Hajiji witnessing the exchange of documents between Harun (left) and Harrison (right) at Menara Kinabalu.
KOTA KINABALU (June 28): Sabah Oil and Gas Development Corporation Sdn Bhd (SOGDC) and London-based shipbroker, E.A. Gibson Shipbrokers Ltd (Gibson) today signed a collaboration agreement at Menara Kinabalu.
The agreement paved the way for a joint development of the oil and gas facilities at the Sipitang Oil and Gas Industrial Park (SOGIP) to include the construction of a purpose-built jetty, onshore hydrocarbon storage terminals, a custom-designed floating power plant, an LNG bunkering operation and LNG shuttle vessels.
SOGDC chief executive officer Datuk Harun Ismail signed on behalf of SOGDC while Gibson was represented by its managing director, Roger David Harrison.
Chief Minister Datuk Seri Hajiji Noor witnessed the signing of the agreement which will establish a robust framework for jointly exploring investment opportunities and advancing the project within SOGIP.
A feasibility study for the proposed project is ongoing and construction is expected to be completed within three years.
SOGDC chairman Datuk Seri Abdul Rahman Dahlan said local players and experts would be involved in the construction of the project, creating about 1,600 job opportunities for Sabahans. This will have a positive economic and social impact on the people of Sabah.
“With an estimated initial trade volume of two million metric tonnes of LNG per annum, 600,000 tonnes of Liquefied Petroleum Gas (LPG) per annum, 150,000 tonnes of ammonia per annum, and five million barrels of crude oil per annum, the influx of marine traffic and foreign traders in SOGIP will mark a new chapter, establishing it as an international trading hub while providing international exposure and permanent job opportunities for the people of Sabah.
“The Floating Storage Regasification and Power Production Unit (FSRP), a component of this project, is also expected to strengthen the power supply in SOGIP while supporting Sabah’s grid,” he said.
Abdul Rahman added that the proposed FSRP technology would produce a by-product of water, providing additional solutions to future water needs in SOGIP and Sipitang.
SOGDC and Gibson also signed a Memorandum of Understanding (MoU) for feedstock supply with Aramco Trading Singapore Pte Ltd to ensure sustainable source for the project.
“EA Gibson Shipbrokers’ experience in the maritime and shipping industry is invaluable, and SOGDC is excited about the opportunities ahead. As for Aramco Trading, your global leadership in energy trading is unmatched, and we are confident our partnership will bring new growth and prosperity.
“Today, we are not just signing an agreement and MoU; we are building a future based on mutual respect, shared goals, and a commitment to excellence. This collaboration shows what can be achieved when industry leaders work together,” said Abdul Rahman.
Meanwhile, Harun said the collaboration with Gibson and its global clientele would unlock energy availability for domestic and international markets, positioning SOGIP as one of the key hubs in the region.
Gibson are London-based shipbrokers with over 130 years of experience advising international clients, primarily in the oil and gas sector.
SOGDC is a Sabah state government agency under the direct purview of the State Ministry of Industrial Development and Entrepreneurship.