Sabah: A year in review
20.05.12

It has been an eventful year for Sabah, characterised by growing streams of investment flowing into the state, enhanced economic cooperation, improved trade relations and several significant offshore oil discoveries, including one announced in November by the national oil corporation, Petronas.
Discovering oil in waters off Sabah’s west coast, 100 kilometres (km) from Kota Kinabalu, Petronas announced that it expected in-place reserves of more than 227 million barrels of oil equivalent (boe).
This was viewed as a harbinger for the next growth industry in Sabah, with oil and gas taking the place of oil palm and timber as the state’s major export commodities.
One spin-off from offshore discoveries earlier like the one in November has been calls to review the five per cent fixed oil royalty the state currently receives from the federal government.
Petronas has also been proceeding with several upstream and downstream oil and gas projects, including the Sabah Oil Gas Terminal (SOGT), the Sabah Ammonia and Urea Project (Samur) and the Sabah-Sarawak gas pipeline (SSGP). Together, these were expected to bolster value-added capabilities in the sector.
Source: The Borneo Post