KOTA KINABALU: The setting up of the Sipitang Oil & Gas Industrial Park (SOGIP) proved that the Sabah state government has a long-term vision to develop the oil and gas (O&G) sector.

“One of the high-impact projects in SOGIP is the Sabah Amonia Urea (SAMUR) project. It is expected to be completed by year-end and production to start next year,” said its Chief Minister, Datuk Seri Musa Aman.

Musa, who is also State Finance Minister, said this in reply to a question from Datuk James Ratib (BN-Sugut) at the Sabah State Legislative Assembly here yesterday. He said the rakyat could be proud of the SAMUR project because Sabah could be one of it would turn Sabah to be one the major players in the fertilizer industry in the region,” he said.

“SAMUR will not only enhance the image of Sabah as the country’s largest producer of urea but will generate jobs and attract experts to the state in the long run,” he said.

Musa said the SAMUR project was an important catalyst to stimulate economic development in Sipitang by fostering development in the area as well as transforming the landscape of the area, including increase the value of land in the area.

“The project has also boosted property prices and rentals in the area and the earnings of the locals had increased. The lodging lodging and services sector such as restaurants and eateries are also growing,” he said.

Musa said the development of the O&G sector has attracted investors like China National Complete Plant Import and Export Corp, Sichuan Chemical Holding (Group) Co Ltd and China Chengdu Engineering Co Ltd to SOGIP.

“These companies signed memoranda of understanding with Sabah Oil and Gas Development Corp on July 22, 2016 to carry our a feasibility study on the proposed production of urea and ammonia regarding the development of the petrochemical industry in SOGIP. He said in the long run the O&G sector would be one of the key contributors to the Sabah economy. — Bernama