corporate report

Transcription

corporate report

CORPORATE
REPORT
2013
VISI ON
Position Malaysia as the
NUMBER ONE OIL AND GAS SERVICES
AND MANUFACTURING HUB
in the Asia Pacific region
MI SS ION
TO CREATE
a dynamic and progressive oil and gas
services industry in Malaysia where
companies can compete and grow
TO PROMOTE
more vitality in the oil and gas industry
via joint-ventures, collaboration,
strategic partnerships and alliances
TO ENCOURAGE
close cooperation among industry,
government and society so that the oil and
gas industry in Malaysia anchors the future
TO ENSURE
prosperity of the country
a high level of integrity, commitment and
professionalism in earning the trust of those
with, and for whom, we work
TO ENHANCE
AND STRENGTHEN
our oil and gas human capital to achieve
international recognition and demand
CONTENTS
Message from the Prime Minister
2
Message from the Chairman
4
Message from the President/CEO
6
Board of Directors
8
Board of Directors' Profile
12
14
Management Team
About MPRC
Our Stakeholders
Our Mandates
Our Strategic Thrusts
Our Core Values
Our Subsidiary
• Johor Petroleum Development Corporation
20
Fulfilling our Mandates
Summary of Highlights
MPRC’s Performance Report
• Attracting Domestic and Foreign Investments
• Bridging Access to Financial Services
• Facilitating Human Capital & Technology Development
• Promoting and Exploring Business Opportunities
• Enabling Markets and Industries
The Road Ahead
42
MPRC in the News
Oil & Gas Roundtable Discussion
48
Info Section
Global Incentives For Trading (GIFT)
52
Acknowledgements
MESSAGE FROM
THE PRIME MINISTER
Malaysia has come a
long way from its humble
beginnings. This is due to the
vision and commitment of its
leaders in ensuring sound and
effective economic measures
that have spearheaded the
country to its present form
and standing in the region and
the world.
MPRC Corporate Report 2013
With its strategic location and excellent
infrastructure, Malaysia clearly possesses a
dynamic economic status in Southeast Asia. With
this in mind, the Government is confident that the
country would be able to achieve its aspiration to
become a high income advanced nation by 2020.
2
The Malaysian Oil, Gas and Energy (OGE) sector is
an essential driving force for the nation's economy,
contributing about a fifth of the country's Gross
National Income (GNI) annually which is equivalent
to about RM127 billion. This clearly reflects the
increasingly significant role this sector has to play
as we approach 2020.
This is why the Economic Transformation
Programme (ETP) was formulated as part of the
National Transformation Programme incorporating
bold, radical and speedy measures to help the
country achieve this objective.
The Oil, Gas and Energy (OGE) National Key
Economic Area (NKEA) is one of the 12 NKEAs
under the ETP and is targeting to maintain the
sector's share of GDP contribution by keeping
pace with a five percent annual growth for the
sector from 2010 to 2020. By doing so, the
sector's GDP contribution needs to increase to
RM241 billion by 2020, a truly ambitious but not
impossible goal. The OGE NKEA is also expected
to deliver an additional 52,300 jobs in this sector.
The OGE NKEA has identified 13 Entry Point
Projects (EPPs) that are expected to generate
RM47.1 billion to GNI while RM61.2 billion will come
from business opportunities and baseline growth.
The remaining RM23.1 billion will come from other
supporting initiatives within the sector.
Malaysia Petroleum Resources Corporation
(MPRC) was established and mandated to fill the
current gap in the oil and gas industry. It is tasked
to promote, catalyse and transform the oil and
gas services and manufacturing sector to become
a stronger entity in the industry. Five EPPs within
the OGE NKEA come directly under the purview
of MPRC. The ultimate goal is to position Malaysia
as the number one oil and gas hub in the Asia
Pacific region.
MPRC identifies and capitalises on growth
opportunities in the upstream and downstream
oil and gas segments to encourage investments.
It also collaborates and promotes partnerships
and joint-ventures between local companies and
global MNCs and helps develop sufficient quality
human capital by facilitating interactions between
industry, research institutions and academia.
As a nation, our transformation journey has
already brought many changes and developments
that have benefited businesses and citizens.
However, we still have a long trail ahead of us
fraught with all kinds of challenges. There is no
doubt that we have done well and achieved much
but there is still more that needs to be done. We
must continue to work hard before being able
to reap the reward of becoming a high income
nation by 2020.
I would like to take this opportunity to express my
appreciation to the entire team of MPRC for their
dedication and hard work in creating additional
value to the oil and gas industry which is among
the mainstay of the Malaysian economy.
1Malaysia "People First, Performance Now"
Yang Amat Berhormat
Dato’ Sri Mohd Najib bin Tun Haji Abdul Razak
Prime Minister of Malaysia
Message from the Prime Minister
Under the management and direction of the
national petroleum company, PETRONAS,
the domestic oil and gas industry has played a
crucial role in the country's economic growth.
However, after decades of oil and gas production,
our domestic resources is declining and we are
developing smaller fields in harder to access
locations as the era of cheap oil is over. To
prepare for this, Malaysia has to strengthen other
value-creating oil and gas activities and ensure
that we have a sustainable energy platform for
future Malaysia.
3
MESSAGE FROM
THE CHAIRMAN
Malaysia is well-positioned to
reap economic benefits from
the increased demand for oil
and gas locally and globally
given its excellent location,
close proximity and increasing
economic inter-linkages to global
energy consumers in the Asia
Pacific region.
4
Additionally, Malaysian oil and gas companies
have the capabilities and experience to provide
multi-disciplinary services that include process
design, mechanical and piping design, structural
and civil design, electrical and instrumentation,
oil rigs engineering and fabrication, welding and
pipe threading, and environmental management
which involves sludge management, removal
and treatment.
With this extensive combination of factors,
the Malaysian Oil, Gas and Energy (OGE)
sector is set to soar to greater heights. It has
already surpassed most first-year targets of the
Economic Transformation Programme (ETP) with
the country’s total Key Performance Index (KPI)
hitting 97 percent.
Malaysia Petroleum Resources Corporation (MPRC)
was established just over two years ago with the
vision of creating a dynamic and progressive oil
and gas services and manufacturing industry
in Malaysia where companies can compete and
grow in this exciting business. This is MPRC’s
inaugural report on its activities and achievements
to this end.
MPRC is driving trans-generational changes in
Malaysia to ensure that we can achieve our goal of
making the country a centre for oil and gas services
and manufacturing activities in the Asia Pacific
region. Our efforts in the region are not merely
focused on raising our production or reserves,
but also on how we expand and grow the oil and
gas services and manufacturing focus areas.
MPRC has achieved much over the past couple of
years. Some of its commendable efforts include
working closely with government agencies
such as the Ministry of International Trade and
Industry (MITI), Ministry of Finance (MOF),
Malaysian Investment Development Authority
(MIDA), Malaysian External Trade Development
Corporation (MATRADE), state Governments
and regional economic corridor authorities
to encourage private investments, formulate
solutions to address investor issues as well as
tracking the development of major projects.
MPRC has been instrumental in engaging with
industry via strong associations with industry
bodies such as the Malaysian Oil and Gas
Engineering Council (MOGEC), the Malaysian
Offshore Constructors Association (MOCA),
the Malaysian Oil & Gas Services Council
(MOGSC), the Malaysian Offshore Vessel Owners
Association (MOSVA) and the Institute of Materials
Management (IMM).
MPRC has also actively built international linkages
with associations from various countries such
as UK Trade and Investment (UKTI), Scottish
Development International (SDI), the Energy
Industries Council (EIC), Greater Stavanger
Economic Development and the Korea TradeInvestment Promotion Agency (KOTRA) among
others. With these linkages, we hope that more
collaboration and business opportunities could
be derived to benefit the industry at large.
To ensure better access to funds, MPRC has
worked with Bank Negara Malaysia to facilitate
talks between the banking sector and the oil and
gas companies. MPRC also organised talks with
Malaysia Technology Development Corporation
(MTDC) to facilitate industry understanding on
available grants.
In response to industry needs for human capital,
MPRC has worked closely with the Ministry
of Education (MoE) via its Industry Centre of
Excellence (ICoE) programme. To this end, MPRC
has been promoting more university-industry
linkages and has participated in many forums to
drive students' interest in joining the industry.
Promoting local industries abroad and finding
potential business opportunities is important in
deriving the industry’s economic growth. MPRC
has worked very closely with MIDA and MATRADE
in attending conferences and exhibitions such
as Offshore Technology Conference (OTC)
and Offshore Northern Seas (ONS) while also
organising marketing missions to other countries.
MPRC’s Global Incentives For Trading (GIFT)
programme is an initiative aimed at petroleum
and petroleum-trading companies to consider
Malaysia as an alternative location for their trading
and storage base. To leverage the GIFT programme
and its transformational role in generating GDP
growth, new business opportunities, creating jobs
and increasing revenues, the Government has
opened up GIFT to include other products such
as minerals, chemicals, agricultural goods and
liquefied natural gas (LNG) in 2013.
Being in the oil and gas industry goes beyond just
having relevant academic qualifications. Integrity,
ownership and responsibility are imperative in
this field.
The upstream and downstream sectors need
to perform at their very best because everyone
else in the equation will be counting on them.
These factors shape the unique and competitive
business that drives our economy which in turn
will accelerate MPRC’s success and the growth of
the oil and gas sector.
I would like to thank all our stakeholders for their
close cooperation with the support of MPRC and
the oil, gas and energy industry at large. These
are early days and there is much that needs to be
accomplished to reach our goal of becoming the
top oil and gas hub in the Asia Pacific region.
YB Senator Dato’ Sri Idris Jala
Chairman, MPRC
Minister in the Prime Minister’s Department
Message from the Chairman
Through this expansion, we can create new jobs,
endow our people with new skills and capabilities,
generate additional business opportunities and
attract more companies to invest in Malaysia.
The benefits of growing the oil and gas industry
have a positive spill-over effect on other ancillary
industries and economic sectors in the country.
5
MESSAGE FROM
THE PRESIDENT/CEO
S i n ce t h e i n ce p t i o n of
Malaysia Petroleum Resources
Corporation (MPRC) in April
2011, the agency has made
important strides in achieving
its mandate. I am delighted to
share with you the inaugural
MPRC performance report.
2013 milestones
As of 2013, MPRC has assisted in generating a total
of RM3.49 billion worth of investments in oil and
gas (O&G) storage. A further RM3.52 billion worth
of investments were attracted in O&G services.
6
MPRC helped to strengthen and expand
collaborations between industry players,
government agencies and other institutions. To
secure a human capital pipeline for O&G services
and manufacturing, MPRC increased the number
of universities actively engaged with the O&G
industry to 11, up from two in the previous year.
MPRC organised the Oil and Gas Funding Forum
and other networking sessions to increase the
O&G industry’s engagement with Bank Negara
Malaysia (BNM), 18 commercial banks and seven
development agencies. We also strengthened
linkages internationally through government-togovernment (G-to-G) initiatives.
To raise Malaysia’s profile on the international
stage, MPRC promoted the national Oil & Gas
Services and Equipment (OGSE) companies to six
countries. We also created the Malaysia Pavilion
at the Offshore Technology Conference (OTC) in
Houston, Texas and brought OTC Asia to Kuala
Lumpur. Through MPRC’s efforts, Kuala Lumpur
is on its way to join the World Energy Cities
Partnership (WECP).
In 2013, a growing number of businesses entered
or deepened their involvement in Malaysia’s O&G
services and manufacturing sector. A total of 20
trading companies were registered under the
GIFT programme, while eight local companies
successfully graduated to the international stage.
The year also saw five successful joint ventures and
the arrival of a multinational corporation (MNC)
in Malaysia. The completion of the masterplan for
the Pengerang Integrated Petroleum Complex
(PIPC) and the Sipitang Oil and Gas Industrial Park
(SOGIP) will enable Malaysia to boost investment
in the downstream sector.
With a resilient economy that grew at 4.7 percent
in 2013, Malaysia is well-placed to take advantage
of the opportunities ahead.
In 2014/2015, MPRC has targeted to increase the
contribution of O&G services and manufacturing
to Malaysia’s GDP. We also aim to bring more
Malaysian O&G companies to provide their
services abroad. Malaysia’s visibility on the world
stage reaches new milestones in 2014 with our
hosting of OTC Asia and Kuala Lumpur’s role
as a WECP partner. MPRC will continue with its
four strategic thrusts to promote Malaysia as the
number one O&G hub in the region.
In closing, I want to offer special thanks to Mr.
Mohd. Emir Mavani, the previous CEO of MPRC.
I wish to thank the members of the Board for their
wisdom and insights. I am also thankful for the
cooperation and support of our key stakeholders,
government agencies and our private sector
partners. Finally, I offer my appreciation for the
hard work and commitment of MPRC’s staff as we
look forward to the year ahead.
Thank you.
Together, the achievements in 2013 have put
Malaysia on course to become the leading
regional hub for O&G services and manufacturing.
As Malaysia becomes a centre of O&G investment,
MPRC’s role in promoting and fostering O&G
policies will continue to grow.
The five-year period ahead will be a boom time
for the O&G industry. PETRONAS is committing
to a capital expenditure of USD100 billion in
Malaysia and internationally during this period.
The industry’s growth stems from a robust
investment pipeline and a healthy expansion
in the upstream and downstream business.
YBhg Datuk Shahrol Halmi
President/Chief Executive Officer
Message from the President/CEO
Opportunities and challenges ahead
7
BOARD OF
DIRECTORS
8
1
1
2
3
4
5
2
YB Senator Dato’ Sri Idris Jala
Chairman
Minister in the Prime Minister’s Department
& Chief Executive Officer
Performance Management and Delivery Unit
(PEMANDU)
3
YBhg Datuk Dr Wong Lai Sum
Director
Chief Executive Officer
Malaysia External Trade Development
Corporation (MATRADE)
4
YBhg Datuk Noharuddin bin Nordin
Director
Chief Executive Officer
Malaysian Investment Development
Authority (MIDA)
5
Ramlan bin Abdul Malek
Director
Vice President
Petroleum Management,
Exploration & Production Business,
PETRONAS
*Ramlan Abdul Malek has retired from his position
in PETRONAS in 2014 and is replaced by Adif Zulkifli
Board of Directors
*Datuk Noharuddin Nordin has retired from his position
in MIDA in 2014 and is replaced by Dato’ Azman Mahmud
9
BOARD OF
DIRECTORS’ PROFILE
YB SENATOR DATO’ SRI IDRIS JALA
was appointed as Minister in the Prime
Minister’s Department and Chief Executive
Officer of the Performance Management
a n d D e l i very Unit (PEMANDU) on
1 September 2009. PEMANDU is a unit
tasked with transforming the social and
economic performance of Malaysia.
In his current role, Dato' Sri Idris leads
the development of seven National Key
Result Areas (NKRAs) in the Government
Transformation Programme (GTP) and
also the Economic Transformation
Programme (ETP) that sets the roadmap
for Malaysia to achieve high-income
status by year 2020.
10
Currently, Dato' Sri Idris also sits as a
member of the World Economic Forum’s
Global Agenda Council on New Growth
Models and World Bank’s panel of
Advisory Experts for Competitive
Industries practice division.
Prior to PEMANDU, Dato' Sri Idris was
Managing Director and CEO of Malaysia
Airlines in December 2005 where the
airline posted 10 consecutive quarterly
profits during his tenure as CEO from
2006 to 2008.
Before joining Malaysia Airlines, Dato' Sri
Idris spent 23 years at Shell, where he
was appointed Managing Director, Shell
MDS (Malaysia) and Vice President, Shell
Malaysia Gas & Power (Malaysia) between
2002 and 2005.
Dato' Sri Idris held the position of
Vice President, Retail Marketing, Shell
International, based out of London from
2000 to 2002 and he was the Managing
Director of Shell Sri Lanka from 1998
to 2000.
RAMLAN ABDUL MALEK served as the
Vice President, Petroleum Management,
Exploration & Production ( E & P )
Business of PETRONAS. As the Head of
Petroleum Management Unit (PMU), his
responsibilities covered the promotion
and regulation of upstream activities
in Malaysia. PMU acts as the petroleum
resource owner and production sharing
contracts manager in Malaysia.
Ramlan has 32 years of working
experience in upstream in the Exploration
& Production areas and had held several
other technical and general management
positions in PETRONAS, PETRONAS
Carigali Sdn Bhd and PETRONAS
Research & Scientific Services. Ramlan
was a member of the PETRONAS
Management Committee as well as the
Chairman of the Society of Petroleum
Engineers (SPE) Asia-Pacific Sdn Bhd,
Director of MPRC and Director of MalaysiaThailand Joint Authority (MTJA).
*Ramlan Abdul Malek has retired from his position in
PETRONAS in 2014 and is replaced by Adif Zulkifli.
YBHG DATUK NOHARUDDIN NORDIN
served as Chief Executive Officer of the
Malaysian Investment Development
Authority (MIDA), a government
principal agency promoting foreign
and domestic direct investment, since
August 2011.
Prior to MIDA, he was Chief Executive
Officer of MATRADE since 2006. He
has wide experience in international
business.
Over the past 19 years at MATRADE,
Datuk Dr Wong headed various divisions,
such as Corporate Management and
Strategic Planning and was Deputy CEO
for Export Promotion prior to her current
portfolio as CEO. Datuk Dr Wong is
actively involved in various committees
for policy development and design to
advance trade and economic growth for
Malaysia and speaks regularly at many
international seminars and conferences.
He had served in various management
positions in MATRADE between 2000
to 2006, including a stint as the Trade
Commissioner to New York, United
States from 1994 to 2000. Datuk
Noharuddin also served in the Ministry
of International Trade and Industry
(MITI) between 1986 to 1993.
*Datuk Noharuddin Nordin has retired from his position in
MIDA in 2014 and is replaced by Dato’ Azman Mahmud.
YBHG DATUK SHAHROL HALMI is the
President and Chief Executive Officer
(CEO) of Malaysia Petroleum Resources
Corporation (MPRC).
In addition, he is also the Director of the
Oil, Gas & Energy and Financial Services’
National Key Economic Areas (NKEA)
of the Performance Management and
Delivery Unit (PEMANDU) besides handling
the Strategic Reform Initiative (SRI)
Government Role in Business (GRIB).
Prior to this, Datuk Shahrol was the
founding Managing Director and CEO of
1Malaysia Development Berhad (1MDB)
which was established to help transform
Malaysia into a high income economy
and enhance Malaysia’s competitiveness.
Prior to founding 1MDB, Datuk Shahrol
was an Executive Partner and Managing
Director of Accenture Malaysia’s public
service operating group. He was
instrumental in growing Accenture
Malaysia’s public service practice, helping
government agencies to add value in
their service to the people of Malaysia.
He also has extensive experience in other
industries such as financial services and
oil and gas.
Board of Directors
YBHG DATUK DR WONG LAI SUM was
appointed as Chief Executive Officer
of Malaysia External Trade Development
Corporation (MATRADE) in August 2012.
She was previously its Deputy CEO I.
Datuk Dr Wong has served in various
capacities in Malaysia’s civil service
since 1980. Her areas of expertise
include international business, taxation,
financial and corporate management
and strategic planning.
11
MANAGEMENT
TEAM
12
3
4
1
1
2
2
Ir. Dr. Shahreen Zainooreen Madros
Executive Director
3
Mohd Yazid Ja’afar
Executive Director
Chief Executive Officer of Johor Petroleum
Development Corporation (JPDC)
Shankar Kanabiran
Executive Director
Management Team
4
13
About
MPRC
The Oil, Gas and Energy (OGE) sector is
one of 12 National Key Economic Areas
(NKEAs) under Malaysia’s Economic
Transformation Programme (ETP).
The Oil, Gas and Energy (OGE) is the
single biggest contributor to Malaysia’s
GDP and comprises three focus areas,
all of which have been targeted for
development: to sustain the O&G
Exploration and Production activities;
to grow the contribution from O&G
Services and Manufacturing sub-sectors;
to diversify our sources of energy for
Power Generation, i.e. Alternative Energy.
OUR
STAKEHOLDERS
Close working
relationship with
key Government
Agencies
Trade Associations
platform to
engage industry
players
Access to
Government
Ministries/ State
Governments
G-to-G
Initiatives
ETP mandate to
transform
Malaysia into the
No.1 O&G Hub in
Asia Pacific
M A L AY S I A
PETROLEUM
RESOURCES
CORPORATION (MPRC) was established to see
through the strategies to grow Malaysia’s services
and manufacturing sector and to make the country
a regional O&G services and manufacturing hub. Its
role is to promote, catalyse and globalise the country's
O&G services and manufacturing capabilities in the
upstream, midstream, and downstream segments.
Formed in April 2011 as an agency reporting to the Prime Minister’s
Department, MPRC’s Board of Directors consist of the CEOs of Malaysian
Investment Development Authority (MIDA) and Malaysia External Trade
Development Corporation (MATRADE) as well as the Vice President of the
Petroleum Management Unit at PETRONAS. Our Board is chaired by Dato’
Sri Idris Jala.
OUR
MANDATES
• Make recommendations on policy for the O&G services and manufacturing sector
in consultation with industry stakeholders
• Make recommendations on business regulations and the tax regime for the O&G
services and manufacturing sector
• Prepare and share an industrial blueprint for the O&G services and manufacturing
sector
• Build a database of companies operating in the O&G services and manufacturing
sector in Malaysia
16
• Promote the O&G services and manufacturing sector and industry players abroad
• Leverage financial incentives offered by Malaysian government agencies in
applying for foreign contracts
• Support O&G services and manufacturing companies setting up in Malaysia
• Interact with industry stakeholders to ensure industry requirements are met in
terms of research and development, talent and financial assistance
OUR STRATEGIC
THRUSTS
Our goal is to ultimately make Malaysia the regional O&G services and manufacturing hub in the Asia
Pacific region. To realise this, we encourage investments and facilitate industry access to funds while
ensuring a good supply of quality human capital and supporting technology development. With these,
we actively promote Malaysia and the industry internationally, and we grow the industry by exploring
potential business opportunities. Underlying all these efforts, we ensure efficient and competitive
market policies and regulatory frameworks are in place to achieve a sustainable long-term growth.
Investment
& Finance
Human Capital
& Technology
Development
Promotion
& Business
Opportunities
Industry &
Market Enabler
Encourage foreign
and domestic
investments into
Malaysia and
facilitate industry
access to funds
Ensure a pipeline of
quality talents for
the O&G industry
and support local
technology
development
Promote Malaysia and
facilitate the regional
growth of domestic
and foreign O&G
service companies
based in Malaysia
Create an efficient
and competitive
market via policies
and regulations
EPP 4
Building a Regional Storage and Trading Hub
EPP 6
Encouraging Investments in the Oil & Gas Services and Equipment (OGSE) Industry
EPP 7
Taking Local Oil & Gas Services and Equipment Companies to the Global Stage
EPP 8
Attracting MNCs to Set Up Operations in Malaysia and Partner with Local Firms
EPP 13
Increase Petrochemical Output
Our strategic thrusts cover the upstream,
midstream and downstream segments of the
O&G industry value chain. It focuses on catalysing
initiatives and developing existing support services
by working closely with industry stakeholders that
can contribute towards growing the O&G services
and manufacturing focus areas. These partnerships
make room for addressing issues faced by the
industry players quickly and effectively and help
ensure a pro-market regulatory environment.
MPRC has been tasked with developing five of the
13 Entry Point Projects (EPPs) identified under the
Oil, Gas and Energy (OGE) NKEA which are also
embedded within the initiatives in the strategic
thrusts. The EPPs were targeted to generate a
GNI of RM131.4 billion and creating an additional
52,300 jobs by 2020.
About MPRC
STRATEGIC THRUSTS
Making Malaysia the number
one O&G services and manufacturing
hub in the Asia Pacific Region
17
In 2013, three of the five EPPs under the purview
of MPRC were reviewed in order to reflect changes
in priorities within the ever-evolving OGE sector.
EPP 6 'Attracting MNCs to Bring Their Global
Oil Field Services and Equipment Operations
to Malaysia' now gives equal emphasis to both
Foreign Direct Investment (FDI) and Domestic
Direct Investment (DDI). With the successful
consolidation of three major fabricators over the
past three years, EPP 7 'Consolidating Domestic
Fabricators' has changed its focus from promoting
industry consolidation towards encouraging local
champions to expand abroad.
Additionally, the scope of EPP 8 'Developing
Engineering, Procurement and Installation
Capabilities and Capacity through Strategic
Partnerships and Joint Ventures' has been
expanded to include joint-venture partnerships
across the entire oil & gas services and
manufacturing focus areas so as to encourage
more multinational companies to set up their
operations in Malaysia through partnerships with
local companies.
OUR
CORE VALUES
MPRC is guided by Core Values that guide the decisions and behaviour of its people.
W
I
18
S
H
Mutual Benefit for All Parties
Win-win
We will generate win-win solutions for our stakeholders
that will be sources of national competitiveness and
sustainable growth.
Be True to Yourself and Honest with Others
Integrity
We create an environment of trust by saying what we
mean and meaning what we say. We are unyielding in our
ethics and we take responsibility for our actions.
Every Task is an Opportunity to Add Value
Stewardship
We embrace every task as an opportunity to improve. We
invest in the professional growth of our people. We are
relentlessly focused on creating value when delivering on
our mandate as nation builders.
Respect for Others will Empower Us to Shape the Future
Humility
We keep an open mind to a diversity of ideas, regardless
of origin. We accept the possibility that there are better
ideas than ours. We are respectful of others and their
views, mindful that we are here to serve.
OUR SUBSIDIARY
JOHOR PETROLEUM
DEVELOPMENT CORPORATION
JPDC has been given the mandate to plan and
develop strategies for the downstream oil and
gas development in Johor and to coordinate and
drive the execution of development projects.
This includes identifying and managing the
funds required for financing downstream
O&G development in Johor while facilitating
the operational follow-through on completed
projects. The Board of Directors of JPDC
comprises representatives from federal and state
government agencies and is co-chaired by the
Chief Minister of Johor and a Federal Minister
in the Prime Minister's Department.
Developing the nation’s petroleum resources requires collaborative and
cooperative efforts by many parties, including PETRONAS and MPRC. MPRC has
a growing and important role to play in areas which have been identified for MPRC
About MPRC
A wholly-owned subsidiary of MPRC, Johor
Petroleum Development Corporation Berhad
(JPDC) was incorporated as a federal agency
when the O&G development project in Pengerang,
Johor was declared a national project of strategic
importance. JPDC’s vision is to 'Transform Johor
into a Sustainable, World-Class Downstream
Oil and Gas Hub'. The agency is committed
to coordinating, facilitating, formulating and
overseeing the implementation of the Pengerang
Integrated Petroleum Complex project. It is a onestop centre for promoting, marketing, establishing
linkages and networking for the Malaysian
downstream O&G industry in Johor.
to participate and contribute, for the overall benefit of the industry and country.
19
RAMLAN ABDUL MALEK
Vice President,
Petroleum Management,
Exploration & Production Business, PETRONAS
Fulfilling our
MANDATES
MPRC made much progress in fulfilling
its mandates in 2012 and 2013 to make
Malaysia a regional oil and gas (O&G)
services and manufacturing hub. It has
also uncovered many opportunities for
future growth.
SUMMARY
OF HIGHLIGHTS
Upstream Oil & Gas Services and Equipment (OGSE) Investment
Category
Year
2012
Oil Rigs/Acquired Assets
2013
Training & Monitoring Centre
2013
Plant
2012
Expansion
2013
DDI/FDI
634
Perisai
DDI
685
UMW Oil & Gas
DDI
643
Perisai
DDI
691
UMW Oil & Gas
DDI
78
THHE & McDermott
FDI
30
TWI Services
FDI
305
Schlumberger
FDI
184
Aker
DDI
50
KKB Engineering
DDI
50
ProEight
3,350
Structured Internship Programme (SIP)
via TalentCorp
2012
188
Tanjung Bin
ATB Sdn Bhd
890,000 cbm
22
Tanjung
Langsat
LGT-2
171,000 cbm
Companies
DDI
Total
Total Additional Storage Capacity
in Johor (2012): 1.06 mil cbm
Investment Value
(RM mil)
2013
161
Internship
Places Secured
Internship
Places Secured
Companies
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đŏ '!.
Companies
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Upstream Oil & Gas Services
and Equipment Investment
(RM mil)
Description
Investment in drilling rig
Naga-3 jack-up drilling rig
413
Exercises option to buy second rig
184
Acquired Naga-4 jack-up drilling rig
Assets acquired via joint venture share swap
Established regional centre in Subang, Selangor
Set-up regional training centre, Asia Center for Reliability and
Efficiency (ACRE), Port Klang
1,349
1,434
Umbilical plant
Foreign Direct
Investment
Plant expansion in Sarawak
Committed Investment for two manufacturing plants in Labuan
Local Oil & Gas Services and
Equipment Companies Venturing
into International Markets
2012
Research Universities Engineering Consultancies
Partnership Programme 2012
Domestic Direct
Investment
2013
GIFT Registered Companies
Cumulative total of
registered companies
Engineering Companies
Thailand: 11%
MMC Oil & Gas Engineering Sdn Bhd
Sri Lanka: 22%
Aker Engineering Malaysia Sdn Bhd
Myanmar: 67%
Perunding Ranhill Worley Sdn Bhd
Technip Consultant (M) Sdn Bhd
RNZ Integrated Sdn Bhd
20
Joint Ventures and MNCs
Expansion into Malaysia
10
Collaborating Universities
LocalInternational: 92%
Universiti Kebangsaan Malaysia
Universiti Sains Malaysia
MNC
Expansion: 8%
Universiti Putra Malaysia
Note:
Refer to page 37
for list of companies.
5
Universiti Malaya
Universiti Teknologi Malaysia
2011
2011-2012
2012-2013
Note:
Refer to page 35
for list of companies.
23
MPRC’S
PERFORMANCE REPORT
In fulfilling its mandates to make Malaysia a
regional O&G services and manufacturing hub
(see box: 'Storage, Trading and More', page 39),
MPRC has concentrated its efforts on its four
strategic thrusts; investment and finance, human
capital and technology development, promotion
and business opportunities, and industry &
market enabler. MPRC’s efforts in all these areas
in 2012 and 2013 uncovered many opportunities
for future growth.
Attracting Domestic
and Foreign Investments
As one of the fastest growing economies in the Asia Pacific region, Malaysia’s flourishing O&G
services and manufacturing focus area has created robust market opportunities for businesses in
the upstream, midstream and downstream segments. Malaysia already houses a number of domestic
and international O&G services players, oil traders and downstream players. MPRC aims to create an
attractive and conducive business environment to continuously attract and encourage foreign and
domestic investments into Malaysia’s O&G industry.
24
Event
Year
Successes Created
Johor Oil & Gas
Cities & Corridors
Lab
2011
2012
• Identified Pengerang Integrated Petroleum Complex
(PIPC) as a new Entry Point Project (EPP)
• Established Johor Petroleum Development
Corporation (JPDC)
Labuan Oil & Gas
Logistics Hub Lab
2012
• Developed blueprint for Labuan to strengthen its
position as the O&G logistics hub for the region
Sabah Oil & Gas
Downstream
Development Lab
2012
• Established a high level plan for Sabah state
government to develop its O&G downstream sector
Sipitang Oil & Gas
Industrial Park
(SOGIP) Masterplan
2013
• EPP13: Developed masterplan for SOGIP
Pengerang
Integrated
Petroleum Complex
(PIPC) Masterplan
2013
• EPP13: Developed masterplan for PIPC
At a Glance: Key Development Projects
Impact to Industry
Attracting Foreign
Direct Investments
(FDI) and Domestic
Direct Investments
(DDI) into O&G
industrial parks
in Malaysia
The initial goal of this strategic thrust was to
attract major international firms to establish
regional operations in Malaysia, especially within
technology-intensive Oil & Gas Services and
Equipment (OGSE) activities. However, in 2013,
the scope was expanded to also encourage
investments by Malaysian companies to acquire
proprietary technology and capital-intensive
assets. One of MPRC’s objectives is to increase the
technical expertise of local and foreign companies
based in Malaysia. The country offers foreign and
domestic investors attractive incentives designed
to help them get the most out of its dynamic
economy. It is one of the world’s top investment
destinations for the O&G sector, attracting
more than 5,000 companies from more than 40
countries around the world.
Initiatives under this strategic area support the
country’s efforts to transform Malaysia into a hub
for Oil & Gas Services and Equipment (OGSE)
activities. In 2012, MPRC helped secure the
exclusive rights to host the Offshore Technology
Conference Asia (OTC) in Kuala Lumpur in
2014 and 2016. This event is expected to raise
the international profile of Malaysia’s Oil & Gas
Services and Equipment (OGSE) industry and
help attract large investments from global firms.
It will also create significant opportunities for
collaboration between Malaysian companies and
foreign multinationals.
PENGERANG, JOHOR
PETRONAS and DIALOG are two investors located within PIPC
PETRONAS Refinery and
Petrochemicals Integrated
Development (RAPID)
DIALOG-VOPAK-SSI
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25
While these efforts will enhance Malaysia’s
reputation as a regional O&G services and
manufacturing hub, it is also imperative that
Malaysia offer world-class infrastructure and
connectivity to attract sustained investments into
the industry. To this end, MPRC works closely with
various agencies to oversee the development of
O&G industrial parks in Malaysia: MPRC’s subsidiary
Johor Petroleum Development Corporation
(JPDC) is the master planner and coordinator of
the Pengerang Integrated Petroleum Complex
(PIPC) in Johor, while in Sabah, MPRC works with
the Sipitang Oil & Gas Development Corporation
(SOGDC) to promote the Sipitang Oil & Gas
Industrial Park (SOGIP).
The country’s infrastructure developments in
Johor, Sabah and elsewhere began to pay off in
2013 as domestic and foreign investors began to
see the many benefits of Malaysia’s regional plans.
In 2013, TH Heavy Engineering and McDermott
International Inc formalised their joint venture via
a share swap arrangement between McDermott
Inc’s locally-incorporated Berlian McDermott
Sdn Bhd and TH Fabricators Sdn Bhd, a whollyowned subsidiary of TH Heavy Engineering Bhd.
The joint venture has created a company with
deep technology capabilities and experience
in engineering, procurement, installation and
commissioning (EPIC) which will help the two
partners explore ever more complex O&G projects
and markets. Investments into the Oil & Gas
Services and Equipment (OGSE) sub-sector from
local players also increased in 2013, with UMW
Oil & Gas Corporation Berhad acquiring Naga-4,
26
a jack-up drilling rig for RM691 million while Perisai
Petroleum Teknologi Berhad exercised its option
to buy a second jack-up drilling rig for RM642.7
million. KKB Engineering Berhad also expanded its
fabrication capabilities in 2013 to meet the growing
demands of the O&G industry (refer to diagram in
Summary of Highlights, page 22).
These investments represent only a fraction of the
total Oil & Gas Services and Equipment (OGSE)
investments in 2013, which also saw a steady inflow
of foreign direct investments (FDI) from the likes of
Petrofac, Schlumberger, Aker, Technip and General
Electric. The rapidly-progressing developments
of the Pengerang Integrated Petroleum Complex
(PIPC) and Sipitang Oil & Gas Industrial Park
(SOGIP) industrial parks also attracted several
significant investments in 2013 (see box: 'Moving
Up the Value Chain', next page).
Sultan Ibrahim Sultan Iskandar and Dato' Sri Najib Razak
looking at the model of the PETRONAS's Refinery and
Petrochemical Integrated Development (RAPID) project
in Pengerang. Pic by Hairul Anuar Rahim
The vibrant oil and gas sector in Malaysia is a result of the aspirations and
initiatives of all those involved; the national oil company, PSC contractors, service
companies, national bodies and the government itself. By working together
with entities such as PETRONAS and MPRC and in-line with our spirit of ‘Beyond
Boundaries’, we hope to continue to grow and to play a collaborative role in taking
the Malaysian oil and gas industry a step further.
Rohaizad Darus
President,
UMW Oil & Gas Corporation Berhad
Moving Up the Value Chain
The thrust of EPP 13: Increase Petrochemical Output is PETRONAS’ development of the Refinery and
Petrochemical Integrated Development (RAPID) in Johor and the Sabah Ammonia Urea (SAMUR) projects.
Together, RAPID and SAMUR involve investments exceeding RM65 billion which aim to increase the country’s
petrochemicals output in order to cater to rising demand for premium speciality chemicals within the Asia
Pacific region.
The Sipitang Oil and Gas Industrial Park (SOGIP) in Sabah is being developed as a premier industrial park
focusing on petrochemicals and fertilisers and will house the SAMUR project. It could potentially attract
as much as RM10 billion in investments and provide approximately 5,370 direct and indirect employment
opportunities. Construction on SOGIP’s 40 MLD water treatment plant began in 2013, and the facility will
eventually include a storage reservoir and approximately 11 km of water pipeline. Work has also commenced
on the 4.7 km access road to SOGIP from Jalan Sipitang-Sindum, with construction scheduled to be
completed by the end of 2014.
As of December 2013, the SAMUR project is more than 50 percent complete with the delivery of three gas
turbine generators and an ammonia converter for the site’s main off-loading facility (MOLF). The SAMUR
project is expected to be on line by 2015. However, more efforts are needed to attract investors into SOGIP,
particularly in the manufacturing of petrochemical and fertiliser products such as caprolactam, diammonium
phosphate, ammonium sulphate, NPK, urea-formaldehyde and ammonium nitrate.
Downstream facilities & petrochemicals
Meanwhile, the 20,000 acre Pengerang
Integrated Petroleum Complex (PIPC) in
Johor will house the RAPID project, which
will have a refining capacity of 300,000
barrels per day. The PIPC complex will
also house naphta crackers, petrochemical
plants, a liquefied natural gas (LNG)
terminal and a regasification plant. MPRC
has established a local subsidiary Johor
Petroleum Development Corporation
(JPDC) to coordinate the development of
the PIPC and to ensure that the various
O&G projects within PIPC are managed
and administered efficiently.
Besides PETRONAS’s RM60 billion RAPID
project, the other major project within
the PIPC is the RM5 billion Pengerang
Deepwater Petroleum Terminal. The joint-
View of the jetty structure at DIALOG's Pengerang terminal at PIPC
Vopak of Netherlands and Johor State Secretary Incorporated is expected to be operationalised in 2014 and
will have a storage capacity for trading of five million cubic metres.
The PIPC Master Plan was endorsed by the Johor state government in 2013 and will serve as a blueprint
to turn PIPC into a world-class integrated petroleum complex. To ensure that the safety and heritage of
Pengerang residents are well preserved, villagers will be relocated to a new township that will have all
necessary modern amenities such as schools, a clinic and commercial areas. Site preparations for the RAPID
project has commenced in 2013 and is in progress.
venture among DIALOG Group of Malaysia,
27
Bridging Access
to Financial Services
Aside from attracting investments into Malaysia's O&G services and manufacturing sector,
establishment of clear linkages to finance is important to ensure that the industry players have
adequate access to financial services and funding. MPRC works with Bank Negara Malaysia to
help the banking sector better understand the O&G services and manufacturing industry and
the opportunities within it. MPRC also works with various other government agencies such as
Malaysian Investment Development Authority (MIDA), Malaysia External Trade Development
Corporation (MATRADE), Malaysian Technology Development Corporation (MTDC), Multimedia
Development Corporation (MDeC), Economic Planning Unit (EPU) and Ministry of Finance (MOF)
to facilitate discussions on incentives for funding to benefit the industry growth.
Event
Year
Bank Negara
Malaysia Business
Reception
2012
• Co-hosted a business reception with Bank Negara
Malaysia during World Gas Conference (WGC) 2012
2012
• Connected financial institutions and O&G industry
players
• The transformation of the oil and gas industry will
have a ripple effect on financial services, which in turn
will expand banks’ earnings base, create new jobs and
develop new skills for employees
World Gas
Conference
(WGC) Business
Reception
Successes Created
Oil &Gas Funding
Forum (OGFF)
2013
• 188 Malaysian Oil & Gas Services and Equipment
(OGSE) companies participated in the inaugural forum
• OGFF brought together 18 banks to meet the Oil & Gas
Services and Equipment (OGSE) companies
Malaysian Technology
Development
Corporation (MTDC)
Technology, Grant, &
Facility Forum
2013
• 53 Malaysian Oil & Gas Services and Equipment
(OGSE) companies participated in the inaugural forum
TERAJU Forum
2013
• Presented areas and opportunities in O&G
to TERAJU members
Impact to Industry
Increased
engagement
between Bank
Negara Malaysia,
banks (18),
development
agencies (7),
and the industry
At a Glance: Engagements on Financial Services, 2012-2013
28
In 2013, MPRC organised the inaugural Oil & Gas
Funding Forum to connect O&G industry players
with the financial industry. The main objectives
of the forum were to improve access to financial
markets and the borrowing environment and
give insights into the various financing options
available to O&G companies. It brought together
over 250 participants from 18 banks and 118
Malaysian Oil & Gas Services and Equipment
(OGSE) companies, and comprised three
panel sessions in which panelists shared their
experience in contracting and project financing
strategies, sourcing funds and O&G financing.
MPRC also co-organised the Oil & Gas Industry
De br ie f for O &G s e r vice provide r s and
manufacturers in cooperation with the Malaysia
Technology Development Corporation (MTDC) in
2013. The half-day event attracted 47 Oil & Gas
Services and Equipment (OGSE) companies
The inaugural Oil & Gas Funding Forum
and included an introduction to MTDC and
presentations on the Commercialisation of
Research & Development Fund, Technology
Acquisition Fund, Business Growth Fund and
Business Start-Up Fund. The main highlights of the
debrief session were the funds and grants available
for the development and commercialisation of
O&G technologies and the MTDC incubator and
technology facility walkabout.
Small-and-medium businesses play an important
role in the success of any industry. In 2013, MPRC
along with SME Corporation Malaysia, Malaysian
Investment Development Authority (MIDA) and
TERAJU (Unit Peneraju Agenda Bumiputera)
facilitated collaboration among various parties to
help provide funding and growth opportunities
for small-and-medium sized Bumiputera
O&G companies.
In addition to these local events, MPRC also cohosted a networking business reception with Bank
Negara Malaysia during the World Gas Conference
in 2012 to connect financiers and O&G service
companies. The event attracted more than 200
O&G companies and 30 financial institutions.
in some notable achievements, namely the Specialised Marketing Mission to
Myanmar and OTC Houston. This collaboration has brought together oil and
gas services companies to these markets.
Abu Bakar Koyakutty
Director,
Oil and Gas & Chemical Division,
Malaysia External Trade Development Corporation (MATRADE)
Collaborative efforts between MATRADE and MPRC in 2013 have resulted
29
Facilitating Human Capital
& Technology Development
In addition to its market-oriented economy and government policies, Malaysia must be able to offer
investors a steady supply of O&G professionals and in the long term to develop local technology
required by the industry. This will help make the country a compelling investment destination
and create long-term growth opportunities for Malaysia within Asia’s O&G industry. A dynamic
relationship between the country’s public and private sectors will also help nurture a strong O&G
ecosystem that must be supported by strong labour and financial markets.
Event
Year
Successes Created
Impact to Industry
ICoE Secretariat
2012
2013
• UTM and MPRC nominated as ICoE for O&G
• 5 companies participated in the 2012 Structured
Internship Programme (SIP)
• 10 companies participated in the 2013 SIP
MOGEC-Universities
Partnership
2012
• 5 Research Universities-Engineering Consultants
partnerships established
Universities actively
engaged with the
O&G industry
increased to 11
(from 2):
Structured Internship
Programme (SIP) via
TalentCorp
2012
2013
• Secured 188 Internship places from 5 companies
• Secured 161 Internship places from 10 companies
2013
• Outreach to professors of local and private
universities on MPRC's agenda via National
Professor Council Forum.
• Linked universities to PETRONAS’ Enhanced Oil
Recovery (EOR) Research & Development (R&D)
initiatives
• First contact with Malaysian Technology
Development Corporation (MTDC) on focus for
Oil & Gas Services and Equipment industry
Human Capital
& Technology
Development
30
UTM-MPRC-MOCACIDB Workshop
2013
Upskilling
Programme via
TalentCorp
2013
GEMS 2.0 via
TalentCorp
2013
• Universiti Teknologi
Petronas (UTP)
Malaysia (UTM)
• Universiti
Kebangsaan
Malaysia (UKM)
• Universiti Putra
Malaysia (UPM)
• Universiti Sains
Malaysia (USM)
• Universiti Malaya
(UM)
• Facilitate workshop, to agree on a more
targeted and tailored training module for
offshore contractors that was approved by
CIDB
MARA (UiTM)
• Helped TalentCorp create awareness of the
Upskilling and GEMS 2.0 programme among
industry players and universities
• Provided feedback and review on the modules
for both programmes
• Universiti Malaysia
Kelantan (UMK)
• Universiti Malaysia
Pahang (UMP)
• Universiti Kuala
Lumpur (UniKL)
• Prestariang
At a Glance: Activities in Human Capital Development, 2012-2013
MPRC’s objective within this area is to encourage
and promote the supply of a quality workforce for
the O&G industry. Between 2010 and 2020, the 13
EPPs within the Oil, Gas and Energy (OGE) NKEA
are expected to create a total of 52,300 jobs of
which some 40 percent, or 21,000 jobs, will be
for highly skilled professionals such as engineers
and geologists.
MPRC undertook several initiatives to develop
human capital in 2013, including establishing
the O&G Industry Centre of Excellence (ICoE) in
cooperation with Universiti Teknologi Malaysia
(UTM). The ICoE will address the current shortage
of skilled talents and build an ample pool of
qualified young talents to meet the future needs
of the O&G sector.
It brings together industry players and universities
and helps identify professional traits and
relevant training and accreditation programmes
to meet industry needs. In collaboration with
TalentCorp, MPRC is also developing technical
and industry-related upskilling courses for skilled
O&G professionals to ensure that they have the
necessary industrial skills demanded by the
O&G industry. The courses are offered to fresh
engineering graduates with a minimum CGPA of
3.0 as shortlisted by employers.
To support the industry’s needs and to promote
re s ea rc h a n d d eve l o p m e nt cap aci t y an d
capabilities, MPRC helped establish the Malaysian
Oil & Gas Engineering Council (MOGEC)Universities Partnership in 2012. The MOGECUniversities Partnership connects five research
universities (UTM, UM, USM, UKM, UPM) with
professional engineering consultants to promote
research and development collaboration within
the O&G sector (refer to diagram in Summary of
Highlights, page 23). MPRC also participated in the
National Professor Council Forum to reach out to
professors from public and private universities in
an effort to create awareness amongst university
professors about opportunities in the O&G sector.
Malaysia’s future human capital needs will also
be supported by the Aberdeen Drilling School,
which set up operations in Malaysia in 2013 to
provide customised training in drilling practices
and technology, cost reduction/unscheduled
events prevention, safety, communication and
leadership. The school aims to use Malaysia as
its base for regional expansion into neighbouring
countries such as Thailand, Vietnam and other
parts of Asia.
MOGEC-Universities Partnership
MPRC’s role in promoting and transforming the oil & gas services
sector complements the structure we currently have in the Malaysian
oil and gas industry landscape to effectively elevate Malaysia’s profile
towards becoming a regional hub for oil and gas services.
Sofiyan Yahya
President,
Malaysian Oil & Gas Services Council (MOGSC)
Students participating in the Oil & Gas Induction
MPRC is also working closely with TalentCorp to
implement the Structured Internship Programme
(SIP) within the O&G industry. This initiative
facilitates internships from public and private
institutes of higher learning and generates more
employable graduates. To support this initiative,
MPRC has teamed up with Universiti Teknologi
Malaysia (UTM) to form a secretariat to encourage
O&G companies to participate in the programme.
As a result of MPRC’s efforts, a total of 10 O&G
companies participated in the SIP programme in
2013 compared to only five in 2012. Nearly 350
internship places have been secured to date (refer
to diagram in Summary of Highlights, page 22).
31
Promoting and Exploring
Business Opportunities
The O&G sector contributes about 20 percent to Malaysia’s GDP. However, it is estimated that at least
90 percent of this total is derived from exploration and production activities. MPRC is working hard to
promote the local O&G services and manufacturing sector to make it more prominent and competitive.
MPRC’s efforts in this strategic thrust are focused
on raising Malaysia’s profile as a regional O&G
services and manufacturing hub by exporting
Malaysian products and services to the global
market. We keep track of local and foreign business
opportunities and are actively engaged with
various international institutions and governmentto-government initiatives.
MPRC made significant progress in this regard
in 2013, in which eight Malaysian companies
expanded abroad, five joint ventures were formed
and a major multinational company expanded
into Malaysia. MPRC also helped Kuala Lumpur
to be nominated as ASEAN’s first member of
the World Energy City Partnership (WECP) in
2014; a non-profit association of 19 of the world’s
leading energy cities. WECP collaboration will be
beneficial for businesses within member cities
as well as local governments in terms of sharing
best practices, energy policies and business
development activities.
32
The WECP Networking Reception is considered one of the
premiere events during OTC
The Malaysian delegation at the Offshore Technology
Conference (OTC) Houston 2013
Malaysian Oil & Gas Services and Equipment
(OGSE) companies made great strides in increasing
their international presence at the Offshore
Technology Conference (OTC) in Houston, Texas
in 2013. During the event, Wasco Energy Group
was awarded the Offshore Technology Conference
2013 Spotlight Award for its new NEPTUNE
Advanced Subsea Flow Assurance Insulation
System and was recognised for its unique industry
collaboration involving new chemistry developed
by Dow. In addition, Kuala Lumpur-based Deleum
Group had the honour of being selected by the
OTC to present a technical paper entitled 'Thermo
Chemical In-Situ Heat Generation Technique to
Remove Organic Solid Deposition: Effective Tool
for Production Enhancement and Flow Assurance'
during the conference.
Event
Year
No. of
Participating
Companies
Successes Created
Impact to Industry
• EPP 7: 2 companies registered in Sri Lanka
Oil & Gas
2 Malaysian Oil &
Marketing
Gas Services and
Mission to
2012
Sri Lanka
Equipment (OGSE)
companies
in 2012
• Government to government MoU with Petroleum
Resources Development Secretariat (PRDS)
• 1 Malaysian company memorandum of
understanding with Sri Lanka companies
MPRC market
2012
survey mission
to Yangon and
Naypyidaw
in 2012
• First contact with Ministry of Energy and
Myanmar Oil & Gas Enterprise (MOGE)
Co-organised
Oil & Gas
a specialised
Marketing
marketing mission
Mission to
Myanmar
• EPP 7: 1 company registered in Myanmar
to Myanmar with
2013
MATRADE and
participated by
14 Malaysian Oil &
Gas Services and
Equipment (OGSE)
• EPP 7: 5 companies registered in Myanmar
in 2013
• Inaugural O&G Specialised Marketing Mission
co-organised by MPRC-Malaysia External Trade
Development Corporation (MATRADE)
• Business-to-business matching between
Malaysian companies and 28 Myanmar companies
companies
Norway
22 Malaysian Oil &
Trade
Industry
2013
Mission to
Gas Services and
Equipment (OGSE)
companies
Malaysia
7 Major Oil &
Offshore
2012
Technology
Equipment (OGSE)
companies
Conference
(OTC),
Houston
Gas Services and
2013
• Trade Industry Mission from Greater Stavanger
Economic Development
• Business to business matching between
22 Malaysian companies and 10 Norwegian
companies
• EPP 8: 2 joint ventures
• Kuala Lumpur as host to OTC Asia 2014 and 2016
• Participated by 15 SMEs under MATRADE
• Promotes Malaysia’s
Oil & Gas Services
and Equipment
(OGSE) companies
to 6 countries
• Created Malaysia
pavilion in OTC
Houston
• Brought OTC Asia
to Kuala Lumpur
• Made Kuala Lumpur
8 Major Oil &
• OTC Technology Spotlight Award to WASCO
Gas Services and
• Technical Paper Presentation by Deleum
Equipment (OGSE)
• OTC Asia 2014 announcement
companies
• Participated by 15 SMEs under MATRADE
a member of WECP
Offshore
Northern
Seas (ONS)
& Offshore
• Pre-cursor to EPP 8 achievement for 2013 (Atlas
2012
10 O&G companies
from Malaysia
Technology
Hall-Oiltools)
• First contact with Greater Stavanger Economic
Development and City of Bergen
Days (OTD)
• MPRC was part of the high-level government and
the event that
private speakers team that introduced the O&G
Malaysia
attracted over
community to the opportunities arising from the
Oil & Gas
6,250 professionals,
government’s roadmap to transform Malaysia into
Services
trade and business
a regional O&G hub.
Exhibition
2012
visitors who came
and
from 38 countries
Conference
to network with
(MOGSEC)
key figures from
the Malaysian oil
Helped to promote
• Offered a platform for Malaysian service providers
to showcase their products and services and
demonstrate the extent of Malaysia's oil and gas
industry capabilities.
and gas industry
More on next page
33
Continued from previous page
Event
Year
No. of
Participating
Companies
Successes Created
Impact to Industry
• EPP 6: TWI set up regional training centre in
Malaysia in 2013
• EPP 8: One MNC set up in Malaysia (ADS) in 2013
MPRC markets
Offshore
Europe
2013
survey mission
to the United
Kingdom
• Pre-cursor to two EPP 8 achievements for
2014/15 (EIC, UPB)
• Established key linkages with UK Trade &
Investment (UKTI), Scottish Development
• Promotes Malaysia’s
International (SDI), Energy Industries Council
Oil & Gas Services
(EIC) and Greater Stavanger Economic
and Equipment
Development
(OGSE) industry
• Pre-cursor to Kuala Lumpur as WEC Partner
to six countries
• Created Malaysia
MPRC representing
World
the Kuala Lumpur
Energy
Cities
2013
Partnership
member of WECP
Korea Trade
Corporation
initiative to register
Kuala Lumpur as a
(WECP)
Promotion
City Hall in its
129 Malaysian Oil &
2013
(KOTRA)
Gas Services and
Equipment (OGSE)
companies
2011
5 companies
2012
5 companies
• Won support of Stavanger and Houston to
sponsor Kuala Lumpur’s intent to register as the
latest member of the partnership
• Dewan Bandaraya Kuala Lumpur (DBKL)
submitted letter of interest in joining the WECP
• Pre-cursor to Kuala Lumpur as a WEC Partner
pavilion in OTC
Houston
• Brought OTC Asia
to Kuala Lumpur
• Made Kuala Lumpur
a member of WECP
in 2014
• MoU between KOTRA and MOGSC
• Business-to-business matching between 129
Malaysian companies and 22 Korean companies
Initiative to transform
Malaysia into a
• Steady increase in the number of companies who
have registered for the GIFT programme.
Global
• EPP 4: MPRC has successfully helped traders
Incentives
For Trading
(GIFT)
2013
10 companies
commodities hub.
It provides an
opportunity for the
country to capture
from around the world to set up their business in
value created from
Malaysia and is continuously working with Ministry
increasing international
of Finance (MOF) and Labuan Financial Services
flows and trade of
Authority (LFSA) to resolve any arising issues
various commodities
including:
• Petroleum and
petroleum-related
products including
• Tanjung Langsat
34
Oil Storage
Terminals
• Achieved storage capacity of 171,000 cbm
(LGT-2)
• Refined raw materials
2012
• Tanjung Bin
liquefied natural gas
• Agricultural products
• Achieved storage capacity of 890,000 cbm
(ATB Sdn Bhd)
At a Glance: Growth and Promotion Activities, 2012-2013
• Chemicals
• Base minerals
including coal
Besides initiating and maintaining the Malaysia
Pavilion at the Offshore Technology Conference
in Houston and significantly increasing the
participation of Malaysian companies at the
event, MPRC also actively promoted the country’s
O&G sector throughout 2012 and 2013 at other
international platforms such as the Offshore
Northern Seas (ONS) and Offshore Technology Days
(OTD) and the Offshore Europe (OE). MPRC also
promotes the Oil & Gas Services and Equipment
(OGSE) companies in domestic conferences
such as the Asia Oil & Gas Conference (AOGC),
Oil & Gas Asia (OGA), and the Malaysia Oil & Gas
Services Exhibition & Conference (MOGSEC). In
addition, MPRC collaborated with key foreign
government agencies in selected countries such
as the United Kingdom, Norway and the United
States to link Malaysian companies to potential
foreign partners and customers (see box:
'A Global Promotion Platform').
Year
2012
Country
Sri Lanka
A Global Promotion Platform
MPRC has helped establish international linkages
that lend support and assistance to Malaysian
O&G players wishing to establish an international
presence. These foreign trade government
agencies include:
• UK Trade and Investment (UKTI)
• Scottish Development International (SDI)
• Energy Industries Council (EIC)
• NOF Energy
• American Petroleum Institute (API)
• Greater Stavanger/Innovation Norway
• Korea Trade-Investment Promotion Agency
(KOTRA)
• United States Embassy
• UBIFRANCE
• Canadian High Commission in Malaysia
Companies
Energy Quest signed JV with Malco Engineering
Daya Materials signed JV with Malco Engineering
Myanmar
MIR Valve invited to bid for work with PC Myanmar
Thailand
ProEight successful in registering in PTTEP-PETRONAS Carigali
Thailand’s vendor list
D&P Services Group successful in registering in PTTEP Myanmar’s
vendor list
Dimension Bid successful in registering into PTTEP and Daewoo’s
vendor list for works in Myanmar
2013
Myanmar
MIR Valve successful in registering in PC Myanmar’s vendor list
Pioneer Engineering Sdn Bhd successful in registering into MOE,
Myanmar’s vendor list for works in Myanmar
TOTAL COMPANIES: 8 COMPANIES VENTURING INTO
3 INTERNATIONAL MARKETS
Local Oil & Gas Services and Equipment (OGSE) Companies Venturing into International Markets, 2012-2013
*Refer to diagram in Summary of Highlights, page 23
Scomi successful in registering into MOE, Myanmar’s vendor list
for works in Myanmar
35
In 2013, MPRC and the Malaysia External Trade
Development Agency (MATRADE) led a delegation
of 14 Malaysian O&G companies on a Specialised
Marketing Mission (SMM) to Myanmar. The
objective of this SMM was to connect Malaysian
O&G companies with key Government officials and
Myanmar O&G companies. This was successfully
achieved and Malaysian O&G companies have made
good progress in bidding for projects in Myanmar
through the Myanmar Oil & Gas Enterprise (MOGE).
Dimension Bid, Mir Valve, ProEight and Scomi were
all successfully pre-qualified for inclusion into the
International Oil Companies’ (IOC) list of vendors
operating in Myanmar.
Malaysian Technology Development Corporation (MTDC)
Technology, Grant and Facility Forum
MPRC and Malaysian Investment Development
Authority (MIDA) also co-hosted the Norwegian
Trade and Investment Mission to Kuala Lumpur,
which gave delegates the opportunity to
understand and familiarise themselves with
Malaysia’s plans for the O&G sector and explore
possible business ventures with Malaysian
companies. A total of 21 Malaysian oil and gas
services companies participated in the event,
where representatives learned how SMEs in
Norway support the country’s O&G industry with a
wide range of services, resources and capabilities.
The development of domestic champions is
encouraged by joint-ventures between local Oil
& Gas Services and Equipment (OGSE) firms and
foreign multinationals. World-class companies help
strengthen the competitiveness of local industry
players when it comes to bidding for international
job tenders, thus enhancing the industry’s growth
prospects. Joint-ventures also help nurture more
of the advanced technology-based companies
the industry needs to support its expansion and
indirectly helps attract global MNCs to set up
regional operation centres in Malaysia. However,
there are challenges to developing joint ventures,
particularly in finding the right fit between
possible partners and in meeting shareholder
requirements. This problem is compounded by a
lack of direct incentives to promote joint ventures
as an investment structure.
For Malaysia to move forward, investments in the local oil & gas sector
36
should be strengthened and consistently promoted in line with the Economic
Transformation Programme where Oil, Gas and Energy has been identified as
one of the National Key Economic Areas. MPRC has been working together with
Malaysian Investment Development Authority (MIDA) in creating the right climate
and environment to boost and promote new and ongoing investments in oil & gas
activities throughout Malaysia.
Datuk Phang Ah Tong
Deputy Chief Executive Officer,
Malaysian Investment Development Authority (MIDA)
Nonetheless, there were several notable JV
successes in 2013, including Atlas Hall’s joint
venture with Oiltools AS, which will allow Atlas Hall
to market and deliver the services and products
of Oiltools AS in Malaysia and across the region.
The joint venture between D&P Services and
Farley Riggs Malaysia will also soon begin to bear
fruit once the firm starts marketing its specialty
production testing services – established in 2007,
Farley Riggs is Australia’s leading Drill Stem Test
service provider with the capability to provide a
complete and well-tested service. Joint venture
agreements were also concluded between Johor
Corporation’s Tanjung Langsat Port Sdn Bhd
(TLP) and Dubai’s Oilfields Supply Center Ltd
as a marine supply base port operator as well as
between TH Heavy Engineering and McDermott
International Inc.
Year
As of 31 December 2013, 20 oil trading companies
had registered for the GIFT programme, including
Mercuria, an independent energy and commodities
groups with revenue more than USD 110 billion
in 2013. In May 2013, the group strengthened its
presence in Asia by opening an office in Kuala
Lumpur as Mercuria Resources Labuan Limited
(MRLL). MRLL plans to increase its product supply
of coal and petroleum products as well as develop
its storage capacity and access to upstream
production site in the region (refer to diagram in
Summary of Highlights, page 23).
Joint Ventures
Companies
PetraEnergy-Coastal Energy
Clough-Sapura
RNZ-PETROFAC
2012
Local-International
Muhibbah Engineering-Ford, Bacon and Davis
Innovative Fluid Process Sdn Bhd-Americas Energy Company
SPK Sentosa Bhd with Superior Energy Services BV
MNC Expansion
Aberdeen Drilling School (ADS) set up a regional training centre
in Malaysia called Aberdeen Drilling International Sdn Bhd
Atlas Hall-Oiltools
FarleyRiggs-D&P Services
Local-International
FR-D&P with Myanmar company for development of integrated
services
Johor Corporation’s Tanjung Langsat Port Sdn Bhd (TLP)-Dubai’s
Oilfields Supply Center Ltd
THHE-McDermott International Inc
TOTAL COMPANIES: 12
Joint Ventures and MNC Expansion into Malaysia, 2012-2013
*Refer to diagram in Summary of Highlights, page 23
2013
37
Enabling Markets
and Industries
As global O&G markets become more complex and competitive, information transparency with
consistent and aligned regulations are a key success factors to allow market efficiency that promotes
further industry growth for Malaysia. The country’s upstream O&G sector has developed remarkably
well over the years, but much needs to be done to strengthen its position in the services, trading and
downstream sub-sectors.
Global Incentives For Trading (GIFT) launching event
38
One of the key elements to achieve this goal is the
alignment of policies and regulations to provide
the best overall solutions to promote growth. To
this end, MPRC took the lead in formulating the
Global Incentives For Trading (GIFT) programme
to promote Malaysia as a trading hub. Working
together with Labuan Financial Services Authority
(LFSA), Ministry of Finance (MOF) and Inland
Revenue Board (IRB), MPRC developed GIFT to
attract global trading companies in petroleum
and petroleum products to set up operations in
Malaysia. In 2013, the programme’s scope was
widened so that it would be applicable for trading
with both resident and non-resident companies
for petroleum and petroleum products. (See box:
'Storage, Trading and More', next page)
GIFT incentives include 0% tax rate for LNG
trading companies, 3% flat corporate tax for other
commodities, full tax exemption on directors' fees
for non-Malaysians and various other exemptions
and benefits.
Storage, Trading and More
South China Sea
Nusajaya
Melaka Straits
Tanjung Bin
Tanjung
Langsat
Pengerang
Singapore
Overview of storage facility projects in Southern Johor
DIALOG's Pengerang Terminal
Petroleum product imports and exports for China, India and Southeast Asia are expected to rise by 1.8 million
barrels per day between 2010 and 2020. It is vitally important for the region to have adequate storage facilities
to accommodate this increased demand and to serve as a buffer against supply shocks caused by geopolitical
instability. Malaysia is ideally suited to fill this gap, which is the main goal of EPP 4: Building a Regional Storage
and Trading Hub.
The Straits of Malacca is recognised as being a major oil shipment route, linking China and Indonesia with
major oil exporters in the Middle East, Africa and Latin America. An estimated 15.2 million bbl flows through
the straits every day, of which 90 percent is crude oil1. Taking into consideration the current storage capacities
of Singapore and Indonesia and with plans afoot to increase Johor’s oil storage capacity to 10 million cubic
metres, the region will soon be the second-largest oil storage hub in the world after the renowned AmsterdamRotterdam-Antwerp (ARA) oil trading hub.
By becoming a regional storage and trading hub, Malaysia and Singapore will be able to complement each
other’s refining and petrochemical activities, independent storage, bunkering and blending facilities while
enjoying easy access to customers in China, India and Southeast Asia. MPRC works closely with federal and
state government agencies as well as regional economic corridor authorities to encourage private investment
within these industries by formulating solutions to address key investor issues such as permits and incentive
schemes as well as tracking the development of key projects.
Malaysia made significant strides towards achieving the goals of EPP 4: Building a Regional Storage and
Trading Hub in 2013. ATT Tanjung Bin Sdn Bhd, a wholly-owned subsidiary of VTTI BV, launched Malaysia’s
largest oil storage terminal in January 2013 with a total capacity of 890,000 cubic meters. Additionally, ATB
Tg Bin plans to increase its storage capacity by 250,000 cubic meters in the Tanjung Bin Petrochemical and
Maritime Industrial Centre by 2015.
Meanwhile, the DIALOG-Vopak joint-venture to develop an independent oil storage terminal in Pengerang,
Johor entered the final stage of the first phase of construction. The terminal will have a capacity of 1.3 million
Energy commenced work on its bitumen storage facility in Tanjung Langsat, with the first phase capacity of
64,000 cubic meters scheduled to be completed in the second quarter of 2014.
World oil demand is expected to grow moderately at 1.5 percent per annum, mostly due to increased demand
from developing countries. However, the oil storage and trading industry is highly susceptible to crude price
volatility and is mainly driven by supply and consumption trends within the region. That said, Malaysia is
set to assume a key role within the ASEAN Economic Community in 2015, which gives the country a unique
opportunity to lead the region’s transformation to an international O&G storage and trading hub.
1
cubic meters when it is complete and is scheduled to launch its first shipment at Q2 2014. In addition, PUMA
U.S. Energy Information Administration, 'World Oil Chokepoints'.
39
Launching of the Industry Consultative Council
In its efforts to grow the O&G services industry,
MPRC was also entrusted to form the Industry
Consultative Council (ICC) in 2012. ICC acts as
an advisory body where industry matters may
be discussed and collaborative efforts pursued
to further develop the industry towards making
Malaysia a regional O&G hub.
ICC is a valuable partnership between MPRC and
O&G trade associations to drive the development
of local companies to become regional and worldclass players. Its council members are made up
of presidents of five main trade associations and
it is chaired by MPRC. The five associations are
the Malaysian Oil and Gas Engineering Council
(MOGEC), the Malaysian Oil and Gas Services
Council (MOGSC), the Malaysian Offshore Vessels
Owners Association (MOSVA), the Malaysian
Offshore Constructors Association (MOCA) and
the Institute of Materials Management (IMM).
40
One of MPRC’s most important tasks was to
develop a comprehensive database of companies
that are registered with PETRONAS and operating
within the O&G services and manufacturing subsector. With the database in place, MPRC worked
closely with PETRONAS to gather comprehensive
data about industry players in terms of their
paid-up capital, investment structure, strengths
and challenges.
As at July 2011, about 93 percent of the 3,545
companies registered with PETRONAS had a paidup capital of less than RM5 million. Many small
players provided common services to support
industry requirements, and there were very few
companies that offered technology-intensive
products or services.
Malaysia Petroleum Resources Corporation’s GIFT programme has
strongly supported Mercuria’s development in Malaysia. The country is an
attractive regional base for foreign companies that want to enter markets
within the Asia Pacific region.
Loo Chong Peng
Executive Director,
Mercuria Resources Labuan Ltd.
THE ROAD AHEAD
In the year ahead, MPRC will prioritise Oil & Gas Services and Equipment (OGSE) sub-sectors
for growth and actively identify opportunities for investments. It will continue to leverage on its
relationships with international trade promotion agencies to identify and attract suitable OGSE
companies to set up operations in Malaysia, either as independent entities or as partners with
local firms. It will also facilitate further discussions between the O&G services and manufacturing
industry and the financial sector to encourage financing opportunities as well as nurture publicprivate partnerships in human capital and technology development.
We w i l l s u p p o r t t h e g row t h o f d o m estic
capabilities and capacity by encouraging greater
strategic domestic investments and technology.
Along with its partners, MPRC must sustain its
efforts to ensure that the incentives and grants
available from Malaysian Investment Development
Authority (MIDA), SME Corporation Malaysia,
Malaysian Technology Development Corporation
(MTDC) and other agencies are directed
towards developing advanced technologybased companies. Challenges also remain in
growing Malaysian global champions within the
OGSE sector, including the strict international
accreditation requirements as well as the risky
nature of foreign projects with stiff competition. It
is imperative that the industry have better access
to financing, and MPRC intends to host sector/
segment-specific forums focusing on potential
areas such as: O&G SMI/SMEs, Marine Services,
Enhanced Oil Recovery and Fabricators.
MPRC will continue to engage with the industry
to identify opportunities abroad and develop the
government-to-government linkages required to
support Malaysian companies in these new markets.
MPRC will also work closely with Malaysia External
Trade Development Corporation (MATRADE) to
promote Malaysian capabilities overseas and keep
up its efforts to link up foreign MNCs with credible
local partners.
Smaller Malaysian OGSE players will require
much assistance to enhance their capabilities
before they will be able to explore opportunities
outside Malaysia. However, MPRC is committed
towards engaging with industry players to identify
the policies and incentives best suited to grow
Malaysian O&G players. Besides its current linkages
with Aberdeen, Stavanger and Houston, MPRC has
also built linkages with Australia, Korea, India, Sri
Lanka, Myanmar, Africa, Kazakhstan, China and
more. These linkages will be nurtured to foster
bilateral relations and create business opportunities
for Malaysian industry players.
In the year ahead, MPRC intends to increase the
exposure and profile of Malaysian O&G companies
through domestic and international platforms
such as the Asia Oil & Gas Conference (AOGC),
Oil & Gas Asia (OGA), Malaysia Oil & Gas Services
Exhibition & Conference (MOGSEC) as well as the
Offshore Technology Conference (OTC), Offshore
Northern Seas (ONS), Abu Dhabi International
Petroleum Exhibition & Conference (Middle East)
and World Gas Conference (WGC).
Besides its promotional activities, MPRC will
continue to play a key role in developing strategic
O&G projects such as Pengerang Integrated
Petroleum Complex (PIPC) and Sipitang Oil &
Gas Industrial Park (SOGIP) as well as other
projects in Labuan, Tanjung Langsat and Port Tok
Bali. MPRC will also step-up its efforts to make
Malaysia a storage and trading hub by continuing
its facilitation for oil storage investment and oil
trading companies.
41
MPRC in the
NEWS
OIL & GAS ROUNDTABLE
DISCUSSION
• Going Global a Necessity,
Not a Choice
by Amy Chew
photos by Saiful Hizam Mansor
Focus Malaysia
• Lack of Collaboration Stymies
Malaysia’s Growth in O&G
by Hafidz Baharom
Focus Malaysia
Visual credit to Focus Malaysia
GOING GLOBAL A NECESSITY,
NOT A CHOICE
Malaysia’s O&G sector must take the critical step of change, producing a competitive model involving
upscaling competence and assets, technology and solutions
by Amy Chew
Focus Malaysia,
7 December 2013
T
HE local oil and gas sector is
probably the single largest
contributor to Malaysia’s gross
domestic product (GDP),
co n t r i b u t i n g a b o u t 2 0 %
annually to its economic pie. Since the
discovery of oil in Miri and the subsequent
incorporation of Petroliam Nasional Bhd
in 1974, oil has become a major source
of revenue for the government. Some
estimate that a major portion of the
economy is financed by oil revenue.
However, after 40 years, and with more
than 4,000 local oil and gas companies,
we still have a long way to go to be
a global player. While Fortune ranks
PETRONAS among the largest global
corporations, over 90% of local oil and
gas companies are still said to be either
small and medium industries (SMIs) or
small and medium enterprises (SMEs).
With this as background, Focus Malaysia
held a roundtable last week with top local
and foreign industry players, who gave
their take on Malaysia’s strengths and
weaknesses. The topic was: As Malaysia
aims to become a regional oil and gas
hub, how can local companies compete in
the big leagues?
The roundtable was moderated by
Focus Malaysia’s executive editor
Prathab V. Panellists included Technip
Geoproduction (M) Sdn Bhd’s chairman
and senior vice-president for Malaysia
and Brunei, Syed Feizal Syed Mohammad;
Schlumberger Group Asia-Pacific
chairman Jamal A Ainul; Malaysia
Petroleum Resources Corporation (MPRC)
executive director Dr Shahreen Zainooreen
Madros; Muhibbah Engineering (M) Bhd
managing director Mac Ngan Boon;
Deleum Bhd Group managing director Nan
Yusry Nan Rahimy; Malaysian Oil & Gas
Engineering Council president Ir Abdul
Rashid Md Sidek; and ProEight Offshore
Engineering Sdn Bhd managing director
Ir Azhar Zainal Abidin. The following is the
first of a two-part report.
How can Malaysian oil and gas
companies compete with the big
boys?
Dr Shahreen: This topic is extremely
relevant at this time, especially since it
is no longer a choice about growing and
becoming a regional hub. As Afta 2015
is looming, globalisation is setting in,
competition in the region is growing. We
can no longer afford to be inward-looking.
Statistically, a huge majority of [local]
companies are very much inward-looking.
There is a handful which has ventured out.
About 20% of [our] GDP comes from the
oil and gas industry and, of the 20%, 8090% is from exploration and production
(E&P). Oil and gas services are way
behind. So there is a necessity to move
and balance the economy.
Abdul Rashid: If Malaysia wants to
become a regional oil and gas hub, the
manpower, the resources must be there.
If you look at the industry, the backbone
of it is engineering and science. If you
don’t have that, you cannot go forward.
Thus you have to start from the basics
all the way. Training at all levels, from
technicians right up to engineers, project
managers, project directors and so on.
Otherwise, we cannot move forward.
Jamal Ainul: I agree with Dr Shareen.
I think that it is not just my thinking,
Schlumberger is also thinking the same
way – that it is not a matter of choice.
It is a matter of doing it now because
everything is falling into place. This
country is the most active in this industry,
overall. We have a national company
admired worldwide. We have a very
good population of English-speaking,
MPRC in the News
Panellists were unanimous that there is a
need for Malaysian companies to change
their outlook, as they can no longer afford
to be inward-looking. Malaysia is an oil and
gas industry leader in the region. However,
neighbouring countries are snapping at
our heels. “It is not a choice but a matter
of doing it now,” the panellists said.
43
From left: Syahrul Zuhara, Corporate Communications Manager MPRC; Ahmad Azwan, Oil & Gas Services and Equipment (OGSE) Manager MPRC; Prathab V., Executive Editor Focus
Malaysia; Abdul Rashid Md Sidek, President, MOGEC; Syed Feizal Syed Mohammad, Chairman and SVP, Technip Geoproduction (M) Sdn Bhd; Nan Yusri Nan Rahimy, Group Managing
Director, Deleum Berhad; Datuk Shahrol Halmi, CEO, MPRC; Mac Ngan Boon, Managing Director, Muhibbah Engineering (M) Sdn Bhd; Azhar Zainal Abidin, Managing Director, ProEight
Oshore Engineering Sdn Bhd, Dr Shahreen Madros, Executive Director, MPRC; Jamal A. Ainul, Chairman, Schlumberger Group Asia Pacic; Eric Chua, Oil & Gas Services and Equipment
(OGSE) Manager. Photo courtesy of Focus Malaysia
well-educated young and experienced
people. That is a difference and if you put
it all together, there is none in the AsiaPacific like us. We have perhaps Brunei a
little bit but they are extremely limited.
So if we don’t do this and become the
regional hub, somebody else will do it.
But they may do a poor job. I think we
can do a better job because we have the
willpower. We have the infrastructure,
the people and of course we have the
[oil and gas] activities. Going forward,
I think that is the objective that can be
achieved – but of course, more work
needs to be done.
Syed Feizal: I think this industry
has been lucky over the decades to
have PETRONAS championing and
contributing to the domestic industry. I
think with this industry, we now have to
take the critical step of change. I think
the critical step of change is to come up
with a competitive model. We have to be
really competitive. That’s why we should
not rely too much on domestic support.
We can use it to enhance business, of
course, but I think we should look where
we are going, what we do and what we
have to offer. So I think we have to look
at upscaling in terms of competence and
assets. We should also be brave to look at
acquisitions – acquisitions of technology
and solutions.
Mac: PETRONAS being the major
provider or the key/core of our oil and
gas industry, is starting to give more
field work to Malaysians. Technology is
something which we Malaysians still do
not have. You’ve got to give [jobs] to
Malaysian companies which will in turn
procure this technology, acquisitions, joint
ventures; and only then can they get the
knowledge. Without these, we cannot go
out as we do not have a track record. So
my view is very simple: PETRONAS has to
identify and support [industry players].
The government and financial institutions
must also give their support. Only then
can Malaysian companies grow.
44
Azhar Zainal Abidin: Coming from an
oil and gas SME company, the biggest
challenge is the technology. If you want
to become an oil and gas hub, one must
have the technology or the manpower
to attract them [industry players] to
come here. At ProEight, we did the
impossible thing via mechanical sealers.
Then, we did not possess the technology
in Southeast Asia. And if one wanted to
go and acquire the technology, it was
virtually impossible. Even if you wanted
to buy, they would not want to do so
with you. In this situation, we hired fresh,
first-class degree engineers – 12 of them.
Then we ventured into three main areas:
technology, speed and brushing. We
managed to produce and our patented
invention is now going to compete and
beat all these [competitors]. We captured
nearly 95% of the market in terms of
mechanical seal supply. Apart from
acquiring technology, we could learn,
emulating the Japanese and Koreans.
Nan Yusri: We are at a juncture in moving
forward as a regional hub. To put it
very bluntly, we have no choice. We
have to do it. We have to support, as an
industry player, in this goal [of] moving
forward. Certainly there will be plenty of
challenges. People say that there are 3Ps
of moving forward – People, Process and
Property. [For the oil and gas industry],
human capital is very important. In terms
of process, we have to be very focused
in what we want to do. We have to be
focused in certain areas.
But then again, some companies may not
want to venture out. They are very happy
here. Thus, we are very fortunate to have
PETRONAS working on this initiative
[driving the local oil and gas industry].
What can we do to realise our goal
of becoming a global player in the
oil and gas industry?
Mac: At Muhibbah, what we were and what
we are today is the result of aspiration. It is a
thought process within the company. When
we were public-listed in 1995, we were a
company with a turnover of RM215 million.
The directors then got together and asked,
“Where are we going?” If we had stayed
in Malaysia alone, the competition is very
small. We asked ourselves what the future
– in 10 years – held for us. We are the best
in port construction. “But are we going to
stay that way?” we asked ourselves. Then
we decided to do two things.
Firstly, diversify beyond construction.
Secondly, diversify our geographical base.
These days, many Malaysian companies
tend to be a bit averse to broadening
[geographically]. “I am good in this,” they
say. It is the same [story] as Kodak and
other companies. Their mindset is this: “We
are the best. We will not go, we will stay in
this sector. We are comfortable. Why take
a risk?” But we have to look beyond that
and look globally. Thus the mentality of
Malaysian companies has to change.
Dr Shahreen: I would like to divide
this into three groups of Malaysians or
existing companies on oil and gas. We
have the very small, specialised SMEs;
you have the mid-sized; and then the
large size. When we look at the details
of 4,400 companies registered in the
oil and gas sector, you find that 80-90%
are SMIs and SMEs. On one hand we do
not want to say that small companies
cannot go abroad, especially [without]
technology. But I agree with Mac, that it
is a mindset issue. Historically, we have
been a protected economy. People are
comfortable doing business in Malaysia.
You need to have that extra incentive,
profitability wise, to venture out, which
will require hard work. As a result,
naturally for the last 40 years, we have
the majority of the companies looking
inwards because it is a protected area.
It’s easier to do business [locally]. But
the scenario is changing and changing
very fast. When you increase local
jobs, people tend not to go out. People
ask, “Why should I go out? There are
ample jobs here!” But the market is
becoming more global and, because of
that, mindsets must change. And that is
the challenge.
Nan Yusri: Let me just add here to the
discussion. For me, it is mindset and
capability. These are the two areas that we
really need to look at in moving forward.
There is a risk that you have to look at,
as Dr Shahreen mentioned. There are a lot
of jobs in Malaysia but there is also a risk
because you are concentrating everything
in Malaysia. All in one basket.
Just to give you an example, we have
been established since 1982. Only in the
past two years have we been aggressively
trying to move into the region. It takes a
lot of effort, mindset change especially
and also capability development. There
is also a risk as PETRONAS is no longer
there to support [us]. Once you are out
there, you are on your own. You can get
completely burned. Then you must be
ready to compete. In order to compete,
you must start to be innovative. That is
where we have to look at other ways, like
forming a partnership first.
Jamal Ainul: I think Mac and I have the
same view. The key thing is the mindset
[issue], but I think it is also the desire. It
is interesting that both of you (Muhibbah
and Deleum) are public-listed companies.
You have [to meet the] demands of
your shareholders and your board of
directors. Here, you [both] always take
a long-term view. I am sure one day
ProEight may be a listed company
(laughter) and [they will] take a longterm view too. If you take a long-term
view then you know nothing [will] last
forever. So Nan Yusri is absolutely right.
Doing business in Malaysia is wonderful
because a lot of things have happened
since Independence, to help local players
in the small companies succeed. But
that won’t last forever either. Thus, when
you take a long-term view, beyond your
current companies, you have to start
to compete regionally. The trick here,
apart from mindset, is capability. I think
we have to innovate. There are also a
lot of initiatives in terms of innovation,
encouragement and things like that. If we
don’t do that then you go to any regional
areas to compete, you have nothing
unique to offer. You have PETRONAS
still holding your hands, but they may
not [companies] when abroad. Like Yusri
said, you are on your own. So partnership,
joint-ventures, acquisitions seem to be
working. Some companies have taken
risks, such as geographical, financial,
technical risks and all kinds of risks. But
with risks come the (financial) returns.
So, take a long-term view and have good
returns. One more thing other than the
mindset is perhaps capability. We have
a well-educated workforce. However, we
may be a little weak on the soft skills.
LACK OF COLLABORATION
STYMIES MALAYSIA’S
GROWTH IN O&G
Malaysia’s O&G sector must take the critical step of change, producing a competitive model involving
upscaling competence and assets, technology and solutions
by Hafidz Baharom
Focus Malaysia
14 December 2013
W
HILE going global is now
a necessity for local oil
and gas companies, the
lack of corporate size
a nd exp erience in
bidding for global projects can throw a
damper to lofty ambitions. These challenges,
say panellists at the recent FocusM
Roundtable Discussion on Oil & Gas, can be
overcome only by closer cooperation.
The lack of experience, talent and financial
strength further aggravates the situation
when going global. The panellists also
pointed out that many local financial
institutions tend to be rigid and decline
to take risks in lending money to SMEs
when they need it most to expand in the
region or globally.
The roundtable session was moderated
by FocusM executive editor Prathab V.
Panellists include Technip Geoproduction
(M) Sdn Bhd chairman and senior vicepresident for Malaysia and Brunei, Syed
Feizal Syed Mohammad; Schlumberger
Group Asia-Pacific chairman Jamal A
Ainul; Malaysia Petroleum Resources
Corporation (MPRC) executive director Dr
Shahreen Zainooreen Madros; Muhibbah
Engineering (M) Bhd managing director
Mac Ngan Boon, Deleum Bhd group
managing director Nan Yusry Nan Rahimy,
Malaysian Oil & Gas Engineering Council
president Ir Abdul Rashid Md Sidek; and
ProEight Offshore Engineering Sdn Bhd
managing director Ir Azhar Zainal Abidin.
In this second and final part from our
roundtable session held earlier, the
panellists proposed that Malaysian oil and
gas companies collaborate more in order
to make waves globally. They also shared
their frustration on how government red
tape is slowing down the pace of activities
in the sector.
Participants at the O&G roundtable discussion. Photo courtesy of Focus Malaysia
Does size really matter in
the oil and gas industry?
Syed Feizal: I think the main purpose is
to help companies to go global. So [if]
that’s one of the key objectives, I think
this is where synergy of local entities need
have strong fundamentals. Sometimes
[it needs] synergy with multinational
companies [MNCs] and I think that when
you put the two together [Malaysian
companies and MNCs], then it gives a lot
more synergy in terms of breaking into
the market.
A combination of the two can compete
for almost all of [the] opportunities in the
Asia-Pacific region as well as outside.
I think local companies should also find
synergy with analysis and ride on the
network, ride on the competency and
skill sets that MNCs can provide. MNCs
themselves also have to think largely
of being multi-local, not just multinational; to be local-minded, and with
opportunities given within the country
should re-invest in the country to grow
the business.
Today we start, maybe as a one-person
(show), so to speak. Today, we are three
thousand people.
Mac: In my opinion, for a lot of Malaysian
companies, we have the real capital but
we don’t have the expertise. The only
way companies can move forward is to
work [together] with MNCs. I think there
are no two ways about it. In terms of our
engineering, the depth of the oil and gas
in the Malaysian companies are still not
there yet. Take for example the work
processes. I think only one or two [local]
companies have some form of process
experience, while the rest do not have
the process experience.
It is true from the one or two jobs, you
will learn something and maybe you can
try something with fewer processes. But
at this moment, other than one or two
which have taken the initial steps, the
rest are not capable.
We need to collaborate. As far as SMEs are
concerned, I think if they are specialised
in some form or another, they may have
to look at keeping up [with] some of the
bigger corporations, listed companies
which then give them the muscles to go,
to work with them to grow. But in the
meantime, collaborate. On another point,
Malaysian companies somehow are rather
averse to working with each other. I don’t
know why it seems to be that way.
Consider the Japanese companies. They
are always working closely together.
They team up when there is a job. Even
the Koreans do this, though they ‘hate’
each other. Malaysian companies find it
very difficult to work together. They are
suspicious [of each other]
I think for us to grow to the next step, we
must all be open-minded.
MPRC in the News
Size does matter when going global.
Industry players also agree that unlike South
Korea, China and Japan, where companies
form consortiums and joint ventures when
expanding overseas, Malaysian SMEs and
their larger counterparts seemed to shy
away from teaming up to achieve greater
heights. Perhaps the lack of trust and
teamwork are among the key reasons.
45
Abdul Rashid: The cultural work ethic can
work for you or it can work against you.
What Mac said is correct. It appears to be
a Malaysian culture of not trying to form
partnerships.
the first place. I don’t know how we can
resolve that. It is number one. We need
to look at it, we have to talk to the clients
and see how we can do (it), how best we
can approach this.
But slowly, when companies are exposed
to the international market, they do
see the need to team up. For Malaysian
companies, you need to have the size,
you need the mass. Which is why, in my
opinion, yes, size does matter in some
ways. For example, how can you create
technology with, say, just three units
(workforce)?
Nan Yusri: The move by the government
and other parties has drawn interest
from global companies that want to
work in Malaysia. They are looking for
partners. They want to collaborate with
partners in Malaysia.
Dr Shahreen: It is a challenge. Our finding
is that the Koreans and the Japanese work
very closely together. Somehow Malaysian
companies tend to work separately.
Unfortunately, our non-interventionist
attitude of letting the market work on
its own doesn’t help. Hence, in MPRC,
we brought 15 companies together. Here
was a platform for them to find out
what each other is doing and they really
started to talk to one another. Existing
platform is not enough to instigate (this
type of collaboration). We hope more
companies will participate in venturing
out together, meeting and understanding
one another better. There needs to be a
lot more communication to understand
one another. This is among the things
we found out among the big players in
Malaysia that have gone international.
Local companies which have ventured
internationally, came to us and said: “Hey,
can you guys help to identify who else
has been in this market from Malaysia”
because for them their business is to do
the work, but they do not know who else
from Malaysia has the experience.
46
So we are trying to find, for example,
how many companies from Malaysia
have gone to Indonesia. So instead of
many companies running around, we
have a list of companies that one can
talk to. This information sharing has to
happen as well (in order to enable the
collaborative network). Prior to this, there
is no entity doing this. We are trying to
break the ice and see and celebrate all
these small successes. We can do one or
two to make it happen and then people
start seeing there is a value in doing
this, and hopefully grow. But I think this
persistence to keep on pushing is the
way to make this happen.
Abdul Rashid: We have to talk together.
Also, we need to talk to understand the
way they (global organisations) set up
the bidding process. Sometimes, in the
bidding process, they invite small local
Malaysian companies, and of course, by
doing that these companies would have
to compete with each other.
What they say to local companies is as
if “You go and find the multinational
or global company to work and bring
them here”. This, perhaps, is why the
competitive atmosphere surfaced in
Again, it comes once again to the
processes. We do have this dream in which
we want to be a regional hub and all that,
but somehow or rather somebody needs
to look at the process from the dream to
the formation of the entities.
Like any other company, we have a vision
and a mission statement. We also have
plans on how you can achieve that. Let
me give you an example, not from one but
a few of our partners who were looking
to set up some facilities in Malaysia.
Compared with our neighbouring
countries, these companies articulated
their experience when dealing with the
equivalent of our Malaysian Investment
D eve l o p m e n t Au t h o r i t y ( M i d a ) .
Interestingly, within two hours they know
everything from A to Z on whatever
you have and whatever you need when
venturing to other countries.
The person sitting at the counter is able
to provide step-by-step guidance on the
types of grant, incentives available and
so on. But when they meet up with the
Malaysian government agencies over
here (they had a different experience).
Let’s say you are setting up a chemical
company. What do you need to do?
What are the incentives that you will
be getting? In one situation, a company
was asked (by the government officer) if
the chemical plant was for agriculture or
for oil and gas. If it’s for oil and gas, the
officer mentioned that they only handle
agriculture (-related queries)!
In the end we said enough is enough.
We (just) don’t have the time. We got
our (own) financing and moved forward.
Luckily for us, since we’ve reached a
certain stage, when the banks (began)
supporting us.
That’s the main reason why we were able
to move far. While the government wants
to do everything, when it comes to the
implementation, it is a different thing.
For SMEs, the main problem is always
finance. We can’t move [without financial
support]. We cannot go to private
companies [for funds]. Sourcing funding
from the government is also very difficult.
Mac: I still come back to the same point.
I think, to become a Malaysian player
in a global scenario, we need to have
human resources, backing from financial
institutions and [have] the government’s
participation. These are the three things
[we need].
Unfortunately, most of the time, as
Azhar said, it is hard to get access to
funds. So, as a startup you will really
have trouble getting access to funds
and you cannot even think about going
to the next step. How then do you
nurture companies like ours?
While as a listed entity, we have some
experts, but it is still not enough expertise
to go abroad.
All this already takes up (at least) one
working day. You then meet another
government agency, go there for oil and
gas. There you are asked if this is your
own intellectual property (IP) or shared
IP. You are then waved onwards to move
to another counter. This process needs to
be improved. When people want to invest,
they want it (solution) fast. They want to
know exactly what they are going to get
and we need to look deeply (at) how we
can improve that.
Azhar: I think MPRC is doing a great
job in promoting Malaysia. But I just
want to add that we (ProEight) have
yet to actually receive a single sen from
government grants.
We need things fast because of innovation
(costs). From our perspective, I would
think we were given the runaround. We
eventually did it on our own.
Photo courtesy of Focus Malaysia
Next is listed companies. Without
sufficient expertise, how do we make the
government understand the oil and gas
industry? It is going to be difficult.
I once had a one-to-one dialogue with
Bank Negara, telling it about several
issues (facing the local oil and gas
sector). I suggested that the financial
institutions should look at supporting
Malaysian products, as Malaysian [oil and
gas] companies contribute 5-6% to the
national GDP.
However, Bank Negara declined to
intervene as it is not allowed to influence
financial institutions.
We are not heading anywhere (in
resolving) these issues. This is exactly what
we faced. I requested that Bank Negara
have a dialogue and include the financial
institutions, so that we in the industry can
talk to them [the banks].This will help the
financial institutions to ‘dialogue’ with us
too and discuss policy.
How do we make government agencies
understand all this? We need this to be in
place so we can grow [steadily].
I see that in Japan and China today, the
banks are very involved with their oil and
gas companies. Even the other Asean
banks, as long as you do a job they will
throw a lot of money at you. Sadly, we
do not do it here. We need to address
this issue.
Syed Feizal: Yes. Rather than addressing
things in a fragmented manner and
dealing with different agencies, there
should be a champion of the good brain,
dissemination of information and trying to
get all the relevant bodies coming on the
same page.
I think where perhaps MPRC is doing a
good job, is actively involved and take a
step further in helping us. I think you are
in a good position to understand all the
issues and try to get everybody on the
same page.
always be the facilitator, crystallising
initiatives but of course, ultimately, it is
not about this alone.
Arriving and becoming a hub ... but for
sustaining it in the long run, it must be a
more sustaining initiative. I am so happy to
hear that there are actually many people
looking at it and saying we can realise this.
Government agencies are always meeting
up to address those issues and we do see
that leadership needs to be there. These
points are noted. Again, I always believe
that it is not a single party, single agency
or single entity which must attend to this.
It has to involve everyone ... to move this
plan ahead.
There are things in which Malaysia is ahead,
we are number one in deep water hubs.
It’s all about marketing, so marketing is
about positioning. I think the more you
are known, in terms of oil and gas on the
global map, then you will especially find
opportunities for the SMEs or for the
bigger players to penetrate into those
markets.
Dr Shahreen: I think there is a clear
need to become a hub and this is an
opportunity and we should not waste it.
But it clearly requires cooperation from
all sides to make it happen. MPRC will
MPRC in the News
For me, there are two segments to
consider. First is the SME question. How
do we help them?
47
INFO SECTION
Global Incentives
For Trading
GIFT
The Global Incentives For Trading (GIFT) programme was
launched by Malaysia Petroleum Resources Corporation
(MPRC) and Labuan Financial Services Authority (LFSA) in
2011 to attract international and domestic companies trading
in petroleum and petroleum-related products to locate their
regional operations in Malaysia.
Under the Economic Transformation Programme (ETP), petroleum
storage and trading was identified as one of the Entry Point Projects
(EPPs) which can contribute significantly to the oil and gas industry
value chain. In line with the goals of the ETP, MPRC created GIFT
together with Labuan Financial Services Authority (LFSA) as its first
product aimed specifically at developing and strengthening Malaysia’s
oil and gas value chain.
The programme began in 2011 with five inaugural members, comprising
Vitol, PETRONAS Trading Corporation, DIALOG, YTL Power Trading
and BB Energy. Since then, GIFT has successfully expanded to 20
members as of 2013.
Malaysia offers a wide range of competitive advantages spanning
its strategic location, vast land banks, world-class infrastructure and
facilities, excellent banking and financial services, a business-friendly
investment climate and a highly skilled workforce. With all these
and grow the oil and gas industry with the ultimate goal of transforming
Malaysia into a regional O&G hub by 2017.
Info Section: Global Incentives For Trading (GIFT)
competitive advantages in place, GIFT was created to further develop
49
GIFT offers petroleum trading companies a unique value proposition
to enhance their competitive edge. Companies in GIFT can:
• Use Malaysia as their base to expand and access growing markets
in Asia Pacific such as China, India and Southeast Asia.
• Participate as long-term investors in the expanding upstream and
downstream segments of the oil and gas industry in Malaysia.
• Benefit from a cost-efficient business environment compared with
other countries in the region, giving companies the flexibility to
expand and enhance their scale of operations.
• Access world-class infrastructure facilities such as storage tank
farms, deep-water jetties, roads, refinery complexes, warehousing
and bunkering.
• Recruit from a wide pool of skilled professionals and a highlyeducated, multi-lingual technical workforce.
• Leverage on excellent local and international banking and financial
services network.
• Receive support from an investor-friendly government and
50
government policies.
• Utilise modern, well-equipped infrastructure and support services
including high-speed broadband networks; highly interconnected
air, road, sea and train networks; excellent logistics and educational
facilities, colleges and institutions of higher learning.
• Balance work with a quality lifestyle, featuring abundant choices
of accommodation, entertainment, dining, healthcare, sports and
recreation.
Companies that participate in the GIFT programme must register under the Labuan International
Commodity Trading Company (LITC). LITC-status companies can trade in petroleum, petroleumrelated products and selected commodities, including minerals and carbon credits.
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Types of
Eligible
Products
Eligibility
Requirements
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āĀĀŏ)%(
đŏ %*%)1)ŏ**1(ŏ!4,!* %01.!ŏ
+"ŏāŏ)%(
đŏ ),(+5ŏŏ)%*%)1)ŏ+"ŏ0$.!!ŏ
,.+"!//%+*(ŏ0. !./
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(+(ŏ/1,,+.0ŏ/!.2%!/
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,.+ 10/
đŏ %*!.(/
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Info Section: Global Incentives For Trading (GIFT)
Key
Incentives
%*/0.1)!*0/ČŏĒŏ+"ŏŏ* ŏ
0.*/"!.ŏ+"ŏ/$.!/ŏ3%0$%*ŏ0$!ŏ
51
ACKNOWLEDGEMENTS
MPRC would like to acknowledge the support of the following organisations for their time and
contribution in our various engagements which in turn has brought us one step closer in fulfilling
our mandates in 2013.
• Bank Negara Malaysia
• Ministry of Education (MOE)
• Construction Industry Development Board (CIDB)
• Ministry of Finance (MOF)
• Dewan Bandaraya Kuala Lumpur (DBKL)
• Ministry of Human Resource (MOHR)
• Greater Stavanger Economic Development
• Ministry of International Trade and Industry (MITI)
• Innovation Norway
• Ministry of Science, Technology & Innovation (MOSTI)
• Institute of Materials (IMM)
• Multimedia Development Corporation (MDEC)
• International Conference & Exhibition Professionals
(ICEP)
• PETRONAS
• InvestKL
• Johor Petroleum Development Corporation (JPDC)
• Johor State Government
• Labuan Corporation
• Labuan Financial Services Authority
• Labuan International Business Financial Centre
• Lembaga Hasil Dalam Negeri (LHDN)
• Majlis Amanah Rakyat (MARA)
• Majlis Profesor Negara
• Malaysia External Trade Development Corporation
(MATRADE)
• Malaysian Industry-Government Group for High
Technology (MIGHT)
• Malaysian Investment Development Authority (MIDA)
• Sabah State Government
• Scottish Development International (SDI)
• Selangor State Investment Centre (SSIC)
• Sipitang Oil & Gas Development Corporation (SOGDC)
• SIRIM Berhad
• SME Corporation Malaysia
• Society of Petroleum Engineers (SPE)
• Suruhanjaya Syarikat Malaysia (SSM)
• Talent Corporation Malaysia Bhd (TalentCorp)
• The Association of Malaysian Oil & Gas Engineering
Council (MOGEC)
• The Economic Planning Unit (EPU)
• The Malaysian Oil & Gas Services Council (MOGSC)
• Malaysian Offshore Contractors Association (MOCA)
• The Performance Management & Delivery Unit
(PEMANDU)
• Malaysian Offshore Vessels Owners’ Association
(MOSVA)
• UK Trade & Investment
• Malaysian Technology Development Corporation
(MTDC)
52
• Prime Minister’s Department
• Unit Peneraju Agenda Bumiputera (TERAJU)
Copyright © 2014
Malaysia Petroleum Resources Corporation (MPRC)
All rights reserved. No part of this document may be reproduced, stored in a retrieval
system, transmitted in any means (electronic, mechanical, photocopying, recording or
otherwise) without the permission of the copyright owner.
Disclaimer: While every reasonable care has been taken in preparing this document, MPRC
cannot be held responsible for any inaccuracies. All information and specifications are
current at the time of preparation and are subject to change as may be required.
Suite 20-11, Level 20, G Tower,
199 Jalan Tun Razak,
50400, Kuala Lumpur, Malaysia.
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