KOTA KINABALU: State-owned Sabah Oil and Gas Development Corporation (SOGDC) Sdn Bhd has signed an agreement with a private firm to build Sabah’s first petroleum oil storage and refinery with investments over US$2.3 billion (RM9.5 billion).
The agreement with Petroventure Energy Sdn Bhd will see the plant being built at the Sipitang Oil and Gas Industrial Park (Sogip) in southwest Sabah, with construction expected to take between three and five years.
Deputy Chief Minister Wilfred Madius Tangau, who is also state trade and industry minister, witnessed the signing of the agreement between SOGDC CEO Geaneve Jane and Petroventure Energy president-cum-managing director Mohd Sham Mohd Yassin here today.
Tangau said the mega project is not only good for the state’s economic development but will also create 3,500 jobs.
Jane, in her speech, said the oil storage and refinery plant in Sogip will pave the way for more diverse downstream activities in the state.
“The chief impact will be on our economy. The refinery can create a new chain of supply which will be beneficial for many businesses,” she said.
Sham said this plant will have storage facilities for two million cubic tonnes of petroleum products while the refinery will have a capacity to produce 3.5 million tonnes yearly.
“The plant will produce diesel and gasoline as our main products.
“It will take three to five years for production to commence.”
He said the state will also benefit in terms of technology transfer, thanks to the Chinese joint venture partner, China CACS Investment Group Company Limited.