Kota Kinabalu, 11 May 2025 — Sabah Energy Corporation Sdn Bhd (SEC) refers to the recent statement by Kim Teck Cheong Consolidated Berhad (KTC) attributing their production disruption and product disposal to a gas supply failure by SEC.

We wish to clarify that the irregularity experienced was due to an upstream/offshore interruption beyond SEC’s control, and there is no direct link between the gas supplied by SEC and the damage allegedly experienced by KTC’s equipment. SEC’s gas distribution system remained within safe operating parameters at all times.

Following the incident, SEC conducted two joint inspections with KTC’s technical team and equipment supplier. The inspections found that the actual issue originated from multiple leaks within KTC’s own oven system. SEC’s sales station, pressure regulator, and pressure relief valve (PRV) were found to be functioning properly with stable pressure settings.

SEC’s temporary isolation was a standard preventive safety measure triggered upon early suspicion of leakage, and was promptly followed by joint site verifications. We reiterate that SEC has not received any validated technical findings linking machinery damage to the integrity of our gas supply.

While we respect KTC’s internal decision to dispose of products, we reaffirm that SEC continues to uphold strict safety and quality standards, and remains committed to supporting all customers with transparency and professionalism.