Petroventure Energy president and managing director Mohd Sham Mohd Yassin said the facility would have an oil storage capacity of two million cubic tonnes while the refinery would have a capacity of 3.5 million tonnes yearly, with the production of diesel and gasoline as the main products.
"It will take us approximately three to five years to complete this project for first production to commence.
"This project will also bring benefit to local Sabahans with the creation of more than 3,000 jobs within the construction period and 500 potential employment for the project proper," he said.
Sabah Deputy Chief Minister Datuk Seri Wilfred Madius Tangau, who is also the State Trade and Industry Minister, witnessed the signing of the agreement.
Meanwhile, SOGDC chief executive officer Geaneve Jane said the oil storage and refinery plant will be built at the Sipitang Oil & Gas Industrial Park (SOGIP) and will pave the way for more diverse downstream activities in the state.
She said the impact would be on Sabah's economy as products from the refinery could create a new chain of supply which will be beneficial for many businesses.
"It will also help us to create more opportunities for entrepreneurs as well as job seekers," she added.