Petronas not neglecting Bumiputera companies, says O&G council – Bernama
The Malaysian Oil and Gas Services Council (MOGSC) has described as baseless, accusations that Bumiputera companies are being neglected by Petroliam Nasional Bhd (Petronas).
It also described the allegation as mere provocation from those who did not understand how the industry works.
MOGSC president Sofiyan Yahya said such a perception, was also insulting, as it downplayed Bumiputera participation in one of the largest contributors to Malaysia's revenue.
The stakeholding, he added, varied from each field of work, with a minimum 30% Bumiputera participation to up to 100%.
"The Bumiputera community has a healthy participation in the oil and gas (O&G) industry with a lot of us in it. It is thus insulting to downplay the Bumiputera contribution in the sector. There is no O&G industry in Malaysia without Bumiputera players," he told Bernama.
Sofiyan said MOGSC, being the largest representative of O&G players in Malaysia, was being called upon to represent the voice of the industry, in the light of recent negative reports of Bumiputera companies being deprived of projects by Petronas.
"MOGSC has 450 members with 90% of them being Bumiputera companies and all have contracts," he added.
He said apart from Bumiputera participation, companies applying to Petronas for a licence must also possess an understanding of the industry, skills, integrity, professionalism and competency.
"Even after obtaining the licence,companies seeking a contract from Petronas must enter into the bidding process.
"There are some companies that do not want to bid as they feel securing the licence is their right to a contract.
"They do not understand the process and Petronas is very transparent with it," Sofiyan added.
He said for those interested in venturing into the O&G industry, Petronas has also provided a platform called the "vendor development programme", which is specifically to help Bumiputera companies gain expertise in desired areas.
"The Council has received complaints from companies that have the licence from Petronas but they were not invited to the bidding process, apart from those who did so and lost, although to another Bumiputera company.
"But when Petronas initiates the tender process, it considers the capability of a company. So, sometimes, a company is not put on the vendor list, as it is incapable," he added.
Commenting on the Refinery and Petrochemical Integrated Development (RAPID) in Pengerang, Johor, Sofiyan said there was no issue over contract distribution in the project, as it had still not been finalised by Petronas.
He said the final investment decision is expected to be made at the end of March next year and what Petronas was doing at present, is preparatory works such as the channelling of water to the work site.
He said Bumiputera companies interested in being involved in the project need to prepare themselves as once it is rolled out, Petronas plans to allocate certain portions for Bumiputera companies and others specifically for Johor-based entities.
Sofiyan said construction of the main plants requires billions of ringgit in investment and high technology and even non-Bumiputeras can't compete against foreign companies.
"Bumiputera companies must look therefore to maintenance and inspection projects and many more supporting jobs over the next 50 years.
"These are all projects that can sustain Bumiputera companies as a viable business. Collectively, the value of the projects to Bumiputeras, is a lot," he added.
Established in 2003, MOGSC is a non-profit organisation with membership from Malaysian-based companies, providing services to country's O&G industry and the region. – Bernama, December 29, 2013.
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