PETRONAS OGSE Partners Day Discusses Industry Competitiveness to Shape a Resilient Future

KUALA LUMPUR, 4 September 2024 – In its second installment, PETRONAS Oil & Gas Services and Equipment (OGSE) Partners Day brought together over 1,000 industry players and stakeholders, including key associations, federal and state departments and agencies to exchange insights on building robust, resilient and competitive industry players for a sustainable energy ecosystem. Key topics discussed included energy transition, technology innovation and adoption, financing strategies, growth opportunities and the development of human capital and capacity.

At the event, PETRONAS also formalised a Memorandum of Understanding (MoU) for the renewal of its Vendor Financing Programme (VFP) with nine panel financial institutions. The programme, which was introduced in 2018, has successfully facilitated access to financing amounting to RM 1.9 billion for over 300 applicants to assist vendors in building their financial resilience amidst the changing energy landscape.

PETRONAS also unveiled its Supplier Support Programme (PSSP), aimed at encouraging vendors to incorporate sustainability principles in support of the National Energy Transition Roadmap (NETR). The programme, in collaboration with Joint Committee for Climate Change (JC3) Greening Value Chain Programme Malaysia, Bursa Malaysia and the UN Global Compact Network Malaysia and Brunei (UNGCMYB), focuses on capacity building through training, access to digital platforms for measuring and disclosing carbon emissions and facilitating access to green and transition financing as part of a just energy transition where no one is left behind.

In his keynote address, PETRONAS Senior Vice President of Malaysia Petroleum Management, Datuk Ir. Bacho Pilong reiterated the need for OGSE players to be agile and resilient with the ever-changing industry landscape to successfully build our nation.

“At PETRONAS, we are deeply committed to nation-building by fostering strong, resilient and empowered communities. Our efforts aim to improve standard of living, enhance livelihoods and promote equitable growth across Malaysia. It is our Amanah of developing the nation’s hydrocarbon resources and delivering energy sustainably for the benefit of the people. Let us all unite our efforts and align our aspirations to achieve beyond greatness regardless of where we operate." he said.

“As energy demands are expected to peak by 2030, industry players must remain agile to focus on efficiency, transforming challenges into opportunities for long-term sustainability and growth. PETRONAS will continue to support the industry in navigating challenges by producing and delivering energy solutions in a responsible and sustainable manner.” he added.

Over the years, PETRONAS has remained dedicated in fostering a resilient OGSE ecosystem through various curated programmes. In addition to VFP, PETRONAS also facilitates the Special OGSE (SOS) Financing Programme for smaller scale vendors through a collaboration with Malaysian Industrial Development Finance (MIDF), from which a total of RM49 million has been approved for over 30 applicants since 2022.

Under the PETRONAS Road to Bursa programme established in 2020 in partnership with Bursa Malaysia, the Company has coached more than 30 local companies, out of which three have been successfully listed on the Bursa Malaysia market. Over and above this, the PETRONAS Vendor Development Programme has also benefitted 171 local businesses since 1993.

MOGSC President, Ts Syed Saggaf Syed Ahmad said, “The PETRONAS Vendor Development Programme (VDP), has been instrumental in enhancing the capabilities of local vendors and suppliers in the oil and gas industry, is designed to foster a competitive local supply chain, promote the development of Small and Medium Enterprises (SMEs), and ensure that Malaysian companies are integrated into the global oil and gas value chain.”

“VDP has had a positive impact on the Malaysian economy by creating jobs and contributing to economic growth, enhancing the skills of the workforce in the oil and gas sector and fostering innovation and technology adoption among local companies.” he added. 

Alongside these efforts, PETRONAS continues to collaborate with industry and government agencies to develop educational and technical courses aligned with the industry’s evolving landscape needs of the energy sector. The Vocational Institutional Sponsorship & Training Assistance (VISTA) programme introduced in 1992 with the objective to assist in delivering technical courses at selected institutions under Technical and Vocational Education and Training (TVET) process, emphasising on job-oriented learning and training to maintain a healthy technical talent ecosystem. Since its inception, VISTA has benefitted more than 12,000 graduates with over RM90 million invested and has collaborated with 27 TVET institutions all over Malaysia. Additionally, PETRONAS also partners with HRD Corp and MOGSC, using the Industrial Skills Framework (IndSF) to raise the competency and capability of the talent requirements across the oil and gas industry.

As PETRONAS reaches its 50-year milestone, the global energy company remains committed in upholding its mandate of maximising the petroleum resources under the Petroleum Development Act (PDA) 1974, supporting the government’s efforts to bolster the country’s economic growth by collaborating with industry players, stakeholders, financial institutions and government agencies to ensure the resilience of the OGSE sector.