Petronas being hit again and again

Petronas in hot soup

• There are about 500 companies involved in Oil and Gas (OGA) industries in Malaysia. It is TRUE that few companies did not received projects from Petronas. Does it make Petronas a culprit? Why someone must use a non-governmental organization (NGO) who is not familiar with OGA to conclude the prestigious GLC neglecting the Malays? Lets check it out.
• BERNAMA writes, the Malaysian Oil and Gas Services Council (MOGSC) says accusations that Bumiputera companies are neglected by Petronas are baseless, describing them as provocation from those who do not understand the industry.
• MOGSC president Sofiyan Yahya said such a perception was insulting, as it downplayed Bumiputera participation in one of the largest contributors to the nation's revenue.
• He said Petronas had stated that a company had to meet Bumiputera stakeholding standards before any licence was approved. The stakeholding varies among the fields of work, with a minimum of 30 per cent Bumiputera participation.
• "The Bumiputera community has a healthy participation in the oil and gas (OG) industry. It is insulting to downplay Bumiputeras' contribution. There is no OG industry in Malaysia without Bumiputera players."
• Sofiyan said MOGSC, being the largest representative of OG players in the country, was called upon to be the voice of the industry, in light of negative reports that Bumiputera companies were being deprived of projects by Petronas.
• "MOGSC has 450 members, with 90 per cent being Bumiputera companies. All have contracts."
• He said apart from Bumiputera participation, companies applying for licences from Petronas must possess an understanding of the OG industry, skills, integrity, professionalism and competency.
• "Even after obtaining licences, companies seeking contracts from Petronas must enter the bidding process. There are some companies that do not want to bid, as they feel that securing licences is their right to contracts. They do not understand the process. Petronas is transparent with it."
• Sofiyan said for those interested in venturing into the industry, Petronas' "vendor development programme" platform helped Bumiputera companies gain expertise in their desired areas.
• "The council has received complaints from companies, which have licences from Petronas, that they were not invited to the bidding process, apart from those who did so and lost, although to other Bumiputera companies. But, when Petronas initiates the tender process, it considers the capabilities of the companies. So, sometimes, a company is not put on the vendor list as it is incapable."
• Commenting on the Refinery and Petrochemical Integrated Development in Pengerang, Johor, Sofiyan said there was no issue over contract distribution, as it was yet to be finalised by Petronas.
• He said the final investment decision was expected to be made at the end of March next year and Petronas was now doing preparatory works, such as channelling water to the work site. He said Bumiputera companies that were interested in being involved needed to prepare themselves as once the project was rolled out, Petronas planned to allocate portions to Bumiputera companies and Johor-based entities.
• Sofiyan said the construction of the main plants required billions of ringgit in investment and high technology, and that even non-Bumiputeras could not compete against foreign companies.
• "Bumiputera companies must look to maintenance and inspection projects and many more supporting jobs over the next 50 years."