Strengthening local expertise

In a significant move to enhance local participation, Shell Malaysia has awarded key contracts to two Sabah-based companies, Neopetro and Sazma Aviation. This decision underscores Shell’s commitment to the socio-economic development of Sabah, aiming to boost local industry capabilities and employment rates in the Oil and Gas sector.

Major roles for Neopetro and Sazma Aviation

Neopetro has been tasked with providing accommodation facilities for over 500 personnel during the upcoming turnaround of the Gumusut-Kakap offshore production platform. This contract is a crucial part of ensuring the platform's operational efficiency and safety during the maintenance period. By involving Neopetro, Shell is not only enhancing operational logistics but also promoting local businesses and expertise.

Sazma Aviation has secured a contract to offer helicopter services, essential for transporting workers to and from Shell’s offshore facilities. This service is vital for maintaining seamless operations and ensuring the safety and efficiency of personnel movements. The inclusion of Sazma Aviation highlights Shell’s strategy to integrate local companies into its operations, fostering growth and capability development within the region.

Commitment to socio-economic development

Sabah’s Minister of Finance, Masidi Manjun, highlighted that these contract awards reflect Shell’s dedication to supporting the local economy and showcasing the competence of Sabahan companies in the Oil and Gas Services and Equipment (OGSE) sector. The minister noted a 40% increase in revenue for Sabahan companies from OGSE-related jobs between 2022 and 2023, with an ambitious goal to achieve an 80% Sabahan employment rate within the industry by the year’s end.

Collaboration for future growth

The contracts were signed by Wong Kim Mun, General Manager of Sabah Shell Petroleum Company (SSPC). This collaboration between Shell, the Sabah government, and local companies is set to drive substantial improvements and capability development in the local Oil and Gas sector, marking a significant step towards sustainable regional growth.