KOTA KINABALU: Jesselton Birost (Sabah) Sdn Bhd plans to collaborate with a China-based company to build and operate a US$4 billion (RM16.5 billion) bonded integrated refinery and oil storage terminal in Sipitang Oil and Gas Industrial Park, Sipitang.
The local company today signed a memorandum of agreement with Zhejiang Zhou Shan Run Shin Energy Co Ltd in Shenzen, China, to become partners in the project, it said in a statement.
The project is expected to kick off after the partners finalise their ongoing negotiations with the Sabah state government on the sub-lease of the proposed land.
The signing ceremony, held during a Sabah trade and investment mission to China, was witnessed by the Sabah Chief Minister Datuk Seri Mohd Shafie Apdal and Sabah Trade and Industry Minister Datuk Wilfred Madius Tangau.
Jesselton Birost (Sabah) chief executive officer Mohd Sham Mohd Yasin said this joint venture would create jobs as well as business opportunities for Sabahans.
“When the oil storage and refinery starts its operations, it will give unlimited possibilities for Sabahans in terms of petroleum by-product businesses, especially in the downstream supply chain,” he said.
Founded in 2018, Jesselton Birost (Sabah) is looking to cement itself as a big player in Sabah’s oil and gas arena.