Jeffrey Kitingan urges Sabah to assert greater control over oil and gas

KOTA KINABALU (March 5): Datuk Seri Panglima Dr Jeffrey G Kitingan has urged Sabah to move more decisively in asserting greater control over its oil and gas resources, saying the state should not be constrained by an overly cautious approach that could limit its economic potential.

The Keningau MP and Tambunan assemblyman was responding to remarks by Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud regarding the different strategies adopted by Sabah and Sarawak in managing their oil and gas sectors.

While acknowledging Mustapha’s views, Jeffrey said the notion that Sabah should adopt a gradual approach to growing its oil and gas revenue requires closer examination.

“While he justifies this model as being in line with Sabah’s current stage of ‘capacity-building’, it is important to recognise that the region’s resource wealth should not be compromised in the name of gradualism,” he said in a statement on Thursday.

Jeffrey said Sabah has the potential to accelerate its economic development by moving towards a more self-sustaining model of oil and gas management rather than relying solely on collaboration with national oil company Petroliam Nasional Berhad (Petronas).

He pointed to Sarawak’s experience as an example, noting that the state has demonstrated it is possible to assert greater control over its resources while building its own capabilities.

“Sabah should not be held back by a cautious approach when the opportunity for greater economic prosperity through full participation in the oil and gas sector is within reach,” he said.

Jeffrey also voiced support for Sarawak’s legal challenge involving federal petroleum laws, saying it should be viewed as a legitimate effort to assert constitutional rights rather than merely an alternative path.

“I fully support Sarawak’s legal stand, and it is disheartening to see it framed merely as an ‘opposing path’. Sarawak, with its greater experience in the oil and gas sector, has every right to pursue a different model that better aligns with its aspirations for autonomy,” he said.

He added that Sabah should similarly assess whether the current framework under Petronas allows the state to fully maximise the value of its natural resources.

While acknowledging the importance of protecting Petronas as a globally recognised national oil company, Jeffrey said the interests of Sabah and Sarawak must also be safeguarded.

“Protecting the interests of Petronas should not come at the expense of empowering Sabah to control its own resources, create jobs and build a more resilient economy,” he said.

Jeffrey also cautioned against underestimating Sabah’s ability to develop its own oil and gas industry, saying the state has the talent and potential to become a significant energy player.

“By continuously deferring to Petronas, we risk stifling the growth of local talent, contractors and entrepreneurs who are ready to contribute to the development of our state’s oil and gas resources,” he said.

He acknowledged that infrastructure gaps need to be addressed but stressed that these should not become reasons for long-term dependency.

“With the right investments, policies and determination, Sabah has the potential to fast-track its development and move beyond a mere participant in the oil and gas sector to an active and independent player,” he said.

Jeffrey added that while legal clarity is necessary in defining the relationship between federal laws and region-owned entities such as Petroleum Sarawak Berhad, it should not be used to maintain the status quo.

“The legal uncertainty is only a symptom of a deeper issue, the need for a fair and transparent framework that allows Sabah and Sarawak to manage their own resources without unnecessary interference from Putrajaya,” he said.

He emphasised that Sabah’s long-term future should be based on greater self-determination.

“It is time for Sabah and Sarawak to be empowered to take control of our future. Sarawak’s bold steps should serve as an inspiration, not a cautionary tale. Let us not settle for gradualism but aim for a model of resource management that puts our people and our future first,” he said.