1. SIPITANG OIL AND GAS INDUSTRIAL PARK
INVESTMENT POTENTIALS AND OPPORTUNITIES
4TH Sabah Oil & Gas Exhibition and Conference
April 13, 2015
MAGELLEN SUTERA, KOTA KINABALU
Presented by
Haji Abdul Kadir Bin Haji Abdullah
@O.K.K. Haji Daimsal

2. SOGIP is located in the District of Sipitang, South –West of Sabah,
SOGIP - LOCATION
SOGIP is located in the District of
Sipitang, South –West of Sabah,
Malaysia
SOGIP is the first and only industrial park in Sabah dedicated to oil & gas activities.
A state-owned company chaired by the Chief Minister of Sabah called Sipitang Oil & Gas Development Corporation Sdn Bhd (SOGDC) was formed in to spearhead the development of SOGIP’s 4,065 acres of land in Mengalong, Sipitang.
SIPITANG is 145km from capital city of Kota Kinabalu and SOGIP is 12km from Sipitang Town.
WHAT AND WHERE IS SOGIP
SABAH FOREST INDUSTRY
LABUAN
BRUNEI D.S.
SFI
SOGIP

3. SOGIP Layout Masterplan with labels.png
SOGIP - ADVANTAGES
Availability of feedstock of natural gas from Sabah Sarawak Gas Pipeline (SSGP), urea and ammonia from SAMUR and ‘MARKISA’ in SOGIP and methanol from Labuan.
SAMUR
BRUNEI
SOGIP Layout Masterplan with labels.png
Proximity to Sabah’s offshore production facilities (Kikeh, Gumusut/Kakap, Kebabangan)
The site offers logistic advantages being located at a sheltered area of Brunei Bay, nearby to major shipping lanes and close proximity to Labuan and Brunei
Natural water depth (16m-20m) which can cater Single Buoy Mooring (SBM) for VLCC’s
Opportunity of tax incentives to SOGIP Investors
SOGIP like Pengerang project in Johor is categorised under EPP 13 of NKEA OGE Sector.
Readily available market for agriculture since it’s
the major industry in Sabah.
WHY SOGIP

4. Conceptual Layout Plan
Your Text Here

5. SOGIP MASTER PLAN
SOGIP is proposed to be positioned as Agro-based petrochemical complex taking into consideration of gas characteristic as well as demand in Sabah
Key consideration in positioning SOGIP as Agro-based Petrochemical Hub
Premier Oil and Gas Industrial Park of Choice for Agro-based Petrochemical in Asia Pacific
Base Feedstock
Phase 1
Phase 2
UREA
Downstream Urea Derivatives :
NPK
Melamine
Urea formaldehyde resin
Other development subject to availability of Gas
Methane rich composition of natural gas limits the options to;
Ammonia and Urea or,
Methanol
Sabah as one of major producers of Palm and Rubber provide huge local demand for fertilisers from Sipitang.
Minimise capital outflow by replacement of imported fertiliser with locally produced
Huge potential for local Sabah companies to be involved in the development of downstream urea ammonia and methanol derivatives .
AMMONIA
Downstream ammonia derivatives :
Ammonium Nitrate
Diammonium Phosphate
Ammonium Chloride
Ammonium Sulphate /Caprolactam
CO2 Derivatives i.e. Acetal Resins, Dry Gas, EOR
METHANOLl
SMIs
Methanol Derivatives
Oil Tankage, Refinery
Reticulation /Gas Distribution
Centralised Utilities Facilities (CUF)
Road and Infrastructure, Port and Jetties, Storage and Warehouse
Central Water Supply

6. Fertilizer: agriculture Fertilizer: palm/rubber Fertilizer: cash crops
INVESTMENT SCENARIO
Sabah gas is rich in methane, hence limiting petrochemical industry development to ammonia, urea and methanol
Ammonia is a more viable petrochemical route due to regional and local market
demand as well as volume availability
Fertilizer: agriculture
Oversupply of market
Insufficient gas volume
for world scale plant
Methane
Rich Natural Gas
Methanol
Ammonia
Natural Gas composition in Peninsular and Sabah
Fertilizer: palm/rubber
Caprolactam
Composition
Peninsular
Sabah
Methane
79%
91%
Ethane
11% 4%
Propane 5% 2%
Butane 3% 1%
C5 +
0.1%
Inert Gas -
1.9%
Ammonium Sulphate
Huge local demand
Diammonium Phosphate
Fertilizer: cash crops
NPK
Ammonium Nitrate
Mela-mine
Urea
Artificial fibre
Ammonium Chloride UF
Power Generation
Power demand in Sabah is limited
100mmscfd = MW
Note : ethane volume is not sufficient to develop ethylene and derivatives complex
UF – Urea Formaldehyde

7. INVESTMENT SCENARIO
Development of SOGIP as integrated petrochemical and fertilisers hub provide opportunity to substitute imported fertilisers for a more competitive agricultural industry in Sabah and Malaysia
Import remains high whilst value of import fluctuates in line with commodity prices
Import Quantity of Fertilisers into Malaysia
Value
RM Mil/year
KMT/year
Approx. 30% or 500KMT/year of the total Malaysia’s consumption of the identified fertilisers is consumed in Sabah in year 2012.
By 2020, consumption in Sabah is forecast to exceed 600KMT/year.
Impact of substitution of imported fertilisers with locally produced to Sabah’s cash flow estimated at;
2012: RM0.760 Billion
2020: RM1.200 Billion
Impact to Malaysian fertiliser import substitution : RM4.0 Billion
Source : MPOB, Lembaga Getah Malaysia, Lembaga Kemajuan Malaysia, Lembaga Ternak Negara, Department of Agriculture, CRU Group, HIS, IFA

9. Crude oil and petroleum product storage terminal

10. With the recent trends, petrochemical development in SOGIP is poised to bring benefit to the community
SOGIP
Construction
Engineering Services
Procurement
Downstream Manufacturing
Training Centres
Tourism
Recreational Facilities
Multiplier Efefct
Residential & Commercial
Financial Services
Transportation
Attract foreign investments into Sabah with key infrastructure and utilities; support SOGIP vision
Create spin-off effects to spur further economic activities
Create employment opportunities for locals
Provide opportunities for Sabah companies to participate

11. Summary of Sabah Work Force Profile
CURRENT SITUATION AND DEVELOPMENT
Sabah: Work Force Profile
OGE EPPs, Manpower and Years
2013
2014
Sabah having the Highest % of Foreign Labours (37.5% in 2011, IDS Study 2012);
Having the Youngest Working Age Group (69.2% aged 39 and below);
75% of Unemployed Persons are 30 and below;
Most Jobs are Low Skilled (67.8% PMR and below); and
Low Paid (20% lower than Sarawak and 45% lower than Peninsular Malaysia.
Kimanis Power Plant (300)
SOGT/SSGP (180)
SOGIP SAMUR (400)
Lahad Datu Re-Gas Terminal (60)
Markmore Group (200)
Lahad Datu Power Plant (300)
PETRONAS Ammonia Plant 2 (180 by 2018)
Gas Separation (97)
Sipitang Chemicals (110 by 2015)
Pristine Oil (500 by 2017)
Petro Asia Pac Sdn Bhd (400 by 2017)
Aplio Refinery Sabah (523 by 2020)
480
660
1090
Summary of Sabah Work Force Profile
2007
2008
2009
2010
2011
Labour Force ('000)
1,267.7
1,294.2
1,345.3
1,589.9
1,640.0
Employed ('000)
1,198.6
1,230.5
1,270.6
1,507.8
1,554.8
Unemployed ('000)
69.2
63.8
74.6
82.1
85.2
Unemployment Rate (%)
5.5
4.9
5.2
Labour Force Participation Rate (%)
65.3
64.5
65.1
65.2
66.7
2010 yearly data has been revised based on revised population estimates that take into account on recent trends of fertility and migration. Data excludes Labuan.
*source: Sabah Yearbook of Statistics 2011

12. Infrastructure Facilities Supporting Facilities
INFRASTRUCTURE & SUPPORTING FACILITIES PLAN
Basic infrastructure will be constructed on site and supporting services facilities is being planned in SOGIP
Road network within SOGIP will be of an industrial standard to cater heavy machineries and lorries
Roads
Multipurpose jetty will be constructed for the overall use and outbound of products for the users of SOGIP
Ports
Infrastructure Facilities
There will be Centralized Utilities Facilities (CUF) to generate electricity and planning to construct new 275kV transmission line
Electricity
supply
By Q1 2014, a new water treatment plant will be completed with capacity of 40MLD
Water
supply
Logistics & Medium and Light Industry
Warehousing and storage facilities services & Maintenance Service Providers
Schedule
Waste
Management
Handling scheduled waste within SOGIP
Supporting Facilities
Human Resource Training Facility
Centre to conduct and provide human capital training for industries within SOGIP
Commercial Services
Government services, Office complexes

13. SOGIP – TAX INCENTIVES
On 1st Nov 2012, Federal Treasury has approved the following blanket financial incentives for the relevant activities in Sipitang Oil & Gas Industrial Park. Promotions for SOGIP was also initiated by SOGDC.
The following incentive policy applies to applications received by SEDIA up until 31st December 2020.
Source: SEDIA website;

14. DEVELOPMENT BY PRIVATE & RELEVANT AGENCIES: DEVELOPMENT BY INVESTORS:
LAYOUT PLANNING
Development will be supported by SOGIP, Relevant agencies and Private Sectors
DEVELOPMENT BY SOGIP:
Internal Infrastructure
Roads (Single carriage way to be expanded in the future)
Drainage
Street light
Fibre optics network
Detention pond
DEVELOPMENT BY PRIVATE & RELEVANT AGENCIES:
CUF and Transmission Lines
Water Supply
Port
DEVELOPMENT BY INVESTORS:
Plot area
Site clearance
Earthworks
Site preparation
Internal Roads & Drainage (Plant area)
Zoning criterion is developed to segregate the sectors based on the following:-
Safety consideration (flammable, toxic and explosiveness of material)
Logical layout of manufacturing operations to reduce piping runs.
Reduce traffic congestion and unnecessary movement within the park limit by clustering related industries

15. Development plan for type of investments in SOGIP
INVESTMENT SCENARIO-DEVELOPMENT PLAN
Development plan for type of investments in SOGIP
Phase 1
2023
2024
2022
2021
2020
2019
2018
2017
2016
2015
2014
Phase 2
PETROCHEMICAL & FERTILIZERS
BULK STORAGE & HEAVY INDUSTRIES
INDUSTRIES
SUPPORTING INDUSTRIES
Transportation
Packaging
Warehouse (Storage Facilities)
MARKISA (Ammonia Plant)
Printing
UTILITIES & INFRASTRUCTURE
Road, Streetlights & Drainage
Electricity , Water & ICT
Centralized Utilities Facility (CUF)
Port & Jetty
Phase 3
Phase 4A
Phase 4B
Oil Refinery
Fabrication Yard
Gas Reticulation
Bio-based Industries
Bulk Products Distribution Terminal
Ammonia Derivatives
Urea Derivatives
Methanol Derivatives
Ship Repair Services
Bulk Storage
SMI
Investments in SOGIP
Phase 1: A. Planned investment
Fertilizers
Ammonia Plant
Ammonia Derivatives
Urea Derivatives
Utilities
Centralized Utilities Facility (CUF)
Gas Reticulation
3.Bulk Storage
Bulk Oil Storage
Bulk Products Distribution Terminal
4.Other Investment
Bio-based industries
Fabrication (shipping, onshore & offshore structures)
Refinery
Phase 1: B. Planned Development by SOGIP
Infrastructure
Road & Street Lights
Drainage
Port and Jetty
Telecommunications
Phase 2: Subject to future availability of gas
Methanol Derivatives
Other heavy industries
Link to Port & Jetty

16. DEVELOPMENT BY PRIVATE & RELEVANT AGENCIES: DEVELOPMENT BY INVESTORS:
LAYOUT PLANNING
Development will be supported by SOGIP, Relevant agencies and Private Sectors
DEVELOPMENT BY SOGIP:
Internal Infrastructure
Roads (Single carriage way to be expanded in the future)
Drainage
Street light
Fibre optics network
Detention pond
DEVELOPMENT BY PRIVATE & RELEVANT AGENCIES:
CUF and Transmission Lines
Water Supply
Port
DEVELOPMENT BY INVESTORS:
Plot area
Site clearance
Earthworks
Site preparation
Internal Roads & Drainage (Plant area)
Zoning criterion is developed to segregate the sectors based on the following:-
Safety consideration (flammable, toxic and explosiveness of material)
Logical layout of manufacturing operations to reduce piping runs.
Reduce traffic congestion and unnecessary movement within the park limit by clustering related industries

17. PHASE 4B
Legend :
Phase 1
Phase 2
Phase 3
Back
Phase 4
Break Waters

19. More information on SOGIP , visit www. sogip. com
More information on SOGIP , visit or to for any enquiries .
THANK YOU