Sabah to Secure 30% Stake in Two New Oil and Gas Fields

KUALA LUMPUR, AUGUST 2026 — The Sabah government is set to acquire a 30% stake in two new oil and gas fields located off the state’s east coast, Chief Minister Datuk Seri Hajiji Noor announced.

Hajiji said the state government is also finalising the acquisition of a 40% equity stake in a floating liquefied natural gas (FLNG) facility project in Sabah. Agreements related to the partnerships are expected to be signed in the near future.

The initiatives form part of Sabah’s efforts to increase its participation in the oil and gas industry through strategic cooperation with Petroliam Nasional Bhd (Petronas) under the Commercial Collaboration Agreement.

According to Hajiji, the partnership will increase the state government’s equity participation in oil and gas exploration and development while creating more opportunities for local companies to participate in the industry.

Sabah also plans to establish new industrial parks, including one in Kota Belud, as well as a blue economy hub in Kudat. The developments are aimed at attracting more investment and strengthening domestic economic activities across the state.

Hajiji said Sabah has maintained annual state revenue collection at around RM7 billion since 2022, with revenue for 2026 expected to increase to approximately RM8 billion.

The state also recorded RM7.6 billion in manufacturing investments in 2025, representing an increase of nearly 208% compared with the previous year.

The Chief Minister said the performance reflects Sabah’s economic resilience amid domestic and global challenges, while strengthening its position as a strategic investment destination.