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Towers, pipework and storage tanks of the SAMUR ammonia and urea plant at the SOGIP industrial area in Sipitang, Sabah.
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SOGIP and the SAMUR Plant in Sipitang

Last updated: 27 September 2026

What are SOGIP and the SAMUR plant?

SOGIP, the Sipitang Oil & Gas Industrial Park, covers up to 5,539 acres of land and sea. Its anchor is the SAMUR plant run by PETRONAS Chemicals, a project of about RM4.6 billion that turns natural gas into ammonia and urea fertiliser. It was 98% complete in July 2016.

What is SOGIP?

SOGIP stands for the Sipitang Oil & Gas Industrial Park, managed by the Sabah Oil & Gas Development Corporation (SOGDC). It is a large, dedicated industrial park built to host downstream oil and gas industries — that is, businesses that take raw oil and gas and turn them into higher-value products such as fertilizers, chemicals and fuels.

Covering up to 5,539 acres of land and sea, SOGIP gives Sabah a base for adding value to the natural gas produced off its coast, instead of simply shipping that gas out in raw form. By clustering related industries together on one site, the area can share infrastructure such as gas supply, power and logistics.

The centrepiece of SOGIP is the SAMUR plant, but the area is designed to support a broader family of gas-related industries. This makes SOGIP one of the most strategically important industrial developments in the state, tying together Sabah's natural resources, its energy partners and its long-term economic ambitions.

Where it is and how it is supplied

SOGIP is located in the Sipitang district, in the southwest of Sabah. Siting the area here connects it to the infrastructure that moves the state's gas onshore and makes the gas available to industry.

Sabah had over 11.67 trillion cubic feet (Tscf) of natural gas reserves as of 2019, about 15% of Malaysia's, according to the state energy plan. Of the 6.8 Tscf identified off the West Coast for 2020 to 2040, 2.6 Tscf was uncommitted and available for new industries and power plants.

ℹ️ Adding value onshore

By piping offshore gas into Sipitang and processing it there, SOGIP keeps more of the value chain inside Sabah. Raw gas becomes fertilizer, chemicals and fuels — products worth far more than the gas alone — supporting local industry and jobs.

The SAMUR ammonia-urea plant

The anchor project at SOGIP is SAMUR, short for Sabah Ammonia Urea, operated by PETRONAS Chemicals Fertiliser Sabah Sdn Bhd. SOGDC puts the project cost at about RM4.6 billion (USD 1.5 billion). Borneo Post reported the plant 98% complete in July 2016.

Earlier versions of this page said SAMUR cost RM8.88 billion, was launched in February 2025 and was a partnership with Yayasan Sabah and Sarawak investors. We could not find any source for those claims and have corrected them.

What SAMUR produces and why

SAMUR makes two products: ammonia and urea. Urea is a nitrogen fertiliser used widely on farms and plantations.

AspectDetail
OperatorPETRONAS Chemicals Fertiliser Sabah Sdn Bhd
Ammonia capacityAbout 740,000 tonnes a year (liquid)
Urea capacityAbout 1.2 million tonnes a year (granulated)
Project costAbout RM4.6 billion (USD 1.5 billion)
FeedstockNatural gas

Other SOGIP industries

SOGDC lists these operations at SOGIP besides SAMUR:

  • Esteel Enterprise Sabah — a green steel facility.
  • PETRONAS FLNG 3 — described by SOGDC as Sabah's first LNG facility.
  • PETRONAS Gas power plant — gas-fired power generation.

Economic significance

SOGIP and the SAMUR plant represent a deliberate strategy to industrialise Sabah's natural gas resources within the state. Rather than exporting raw gas, the area captures more of the value chain locally, turning gas into fertilizer, chemicals, fuels and electricity.

At about RM4.6 billion, SAMUR is one of the largest industrial investments in Sabah. SOGIP is where much of Sabah's gas-based industry is concentrated, in the southwest of the state.

Sources

Checked 27 September 2026.

Frequently asked questions

Q Where is SOGIP located?
SOGIP, the Sipitang Oil & Gas Industrial Park, is in the Sipitang district of southwest Sabah and is managed by the Sabah Oil & Gas Development Corporation (SOGDC). Its land and sea area together total up to 5,539 acres: 3,068 acres onshore and 2,471 acres offshore.
Q What is the SAMUR plant?
SAMUR stands for Sabah Ammonia Urea. It is the anchor project at SOGIP, run by PETRONAS Chemicals Fertiliser Sabah Sdn Bhd. SOGDC puts the project cost at about RM4.6 billion (USD 1.5 billion). It was reported 98% complete in July 2016.
Q What does the SAMUR plant produce?
SAMUR has capacity for about 740,000 tonnes of liquid ammonia and about 1.2 million tonnes of granulated urea a year. SOGDC describes it as the largest single-train granular urea plant in Southeast Asia. Urea is a nitrogen fertiliser used widely on farms and plantations.
Q Where does SAMUR get its feedstock?
The plant uses natural gas as its feedstock. The state energy plan notes that Sabah's gas is lean, about 90% methane, which suits power generation and methane-based chemicals such as urea and ammonia.
Q Who owns SAMUR?
SOGDC lists the operator as PETRONAS Chemicals Fertiliser Sabah Sdn Bhd, part of the PETRONAS Chemicals Group. Earlier versions of this page named Yayasan Sabah and Sarawak investors as partners; we could not find a source for that and have removed it.
Q What else is at SOGIP besides SAMUR?
SOGDC lists these at SOGIP: the SAMUR ammonia-urea plant, Esteel Enterprise Sabah (a green steel facility), PETRONAS FLNG 3 (described as Sabah's first LNG facility) and a PETRONAS Gas power plant.
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