Fueling the Future: Exploring the Petronas Kinabalu

Activity Outlook for 2026-202

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The energy landscape in Sabah is gearing up for a transformative era. The recently released Kinabalu Activity Outlook (KAO) 2026-2028 outlines a clear roadmap for progress, highlighting a wealth of opportunities across the Upstream, Downstream, and Gas and Maritime sectors. This report, a localized extension of the PETRONAS Activity Outlook, serves as a vital guide for stakeholders and local vendors to align with upcoming projects and sustain a resilient energy ecosystem in the region.

Empowering Local Growth: The OGSE Transformation

Sabah’s Oil and Gas Services and Equipment (OGSE) sector is witnessing remarkable growth. Since the 2021 Commercial Collaboration Agreement (CCA), the number of licensed Sabah vendors has surged from 201 to 377 by 2025. Even more impressive is the nearly fourfold increase in contract awards held by local vendors, jumping from 133 to 499 in the same period. 

Key achievements in local empowerment include:

• National Reach: Sabah vendors have secured major contracts for Integrated Gas Turbine Maintenance and Platform Support Vessel (PSV) operations across Malaysia.

• Financial Support: The Vendor Financing Programme (VFP) has facilitated over RM128 million in funding for 19 local companies since 2018.

• Talent Development: The VISTA programme achieved a 71% employability rate for TVET graduates in 2025, ensuring a steady pipeline of skilled local talent

Upstream Outlook: A 3-Year Activity Roadmap

The Petronas Kinabalu Activity forecast for 2026-2028 indicates a steady flow of projects designed to maintain production sustainability.

Notable projects under execution include the Block H-Alum, Bemban, and Permai greenfield developments, as well as the Kikeh FPSO Replacement brownfield project scheduled for later in the horizon

Opportunity Summary: 965 Potential Contracts

For vendors looking to participate, the outlook is bright. A total of 965 potential contracts are projected to be initiated between 2026 and 2028. These range from “Base” level contracts with low entry barriers to “Complex” contracts involving proprietary technology.

• 2026: 469 potential contracts
• 2027: 177 potential contracts
• 2028: 319 potential contracts

Critical categories for upcoming tenders include Chemicals, Electrical Equipment, Logistics, and Well Services

Looking Ahead to 2035

As PETRONAS moves toward its goal of becoming an integrated energy company by 2035, the focus in Sabah remains on innovation, digitalization, and sustainability. Local vendors are encouraged to remain adaptive and resilient as they step forward to set new benchmarks in Malaysia’s oil and gas landscape

“Future readiness calls upon Sabah vendors to be resilient, adaptive, and aligned with emerging energy trends.”