Petronas expands its VDP programme
Published by Lydia Woellwarth,
As part of its initiative to boost the capabilities of local companies in Malaysia's oil and gas industry, PETRONAS today launched VDPx – a new vendor development scheme under the company's existing Vendor Development Programme (VDP) to be implemented in collaboration with major industry players in the country.
Under this new VDP scheme, a total of 18 organisations, comprising six Petroleum Arrangement Contractors (PACs) and 12 Oil and Gas Service and Equipment (OGSE) companies, will replicate PETRONAS' VDP programme, to reach out to more local vendors and further amplify its benefits to the industry as well as the nation.
In implementing the scheme, the participating organisations will be supported in the areas of business development, financial management, technical and ICT by seven agencies, namely SIRIM Berhad; Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR); Malaysia Digital Economy Corporation Sdn Bhd (MDEC); MIMOS Berhad; National Institute of Occupational Safety and Health (NIOSH); Talent Corporation Malaysia Berhad (TalentCorp); and Association of Chartered Certified Accountants Malaysia (ACCA).
The programme, launched at a special event to commemorate PETRONAS' 25-year active involvement in developing local vendors since 1993, was held at the Kuala Lumpur Convention Centre.
Present to launch the VDPx were Minister of International Trade and Industry (MITI) YB Darell Leiking as well as President and Group CEO of PETRONAS, Tan Sri Wan Zulkiflee Wan Ariffin. The launch was followed by an MoU signing between PETRONAS and the participating organisations.
Speaking at the event, Tan Sri Wan Zulkiflee said: "PETRONAS' commitment is to nurture local entrepreneurs to overcome high-entry barriers to the oil and gas industry and create a pool of vendors who can generate value. It is crucial to fortify the industry's ecosystem through sustainable vendor development, more so in the current and challenging business environment."
"VDPx, an evolution of the current VDP, is initiated to further develop capabilities within the oil and gas industry while creating multiplier effects that benefits the industry and economy.
"We empower second-tier VDP anchors or contractors to develop their own ecosystem of vendors to support their businesses and the industry. Today's signing of MoU with these second-tier VDP anchors and industry enablers, marks a new dawn of collaboration within the oil and gas sector," he added.
YB Darell in his speech said: "We will ensure that VDP continues to receive support in terms of training, capacity building, product development and enhancement as well as market promotion for Bumiputera vendors. Vendors have access to two programmes under the 11th Malaysia Plan – the Research and Commercialisation Grant (GPPV), with an allocation of RM30 million; and the Capacity Development Programme for Vendors (PPKV), with an allocation of RM31 million."
"The new government is committed to enabling small players to become successful. It is about the platforms that we provide for you to do your best; success will come from enabling you to innovate fast. You can leverage on programmes like VDP to get to know and work with the best in your field.
"It is the government's aspiration for anchor companies to participate in such development programmes to nurture Malaysian SMEs and to help them ascend beyond their comfort zone. VDP has resulted in multitudes of success stories that can be lessons to many entrepreneurs, especially the new kids on the block," he added.
Established in 1993, PETRONAS' VDP programme has helped 99 local companies thrive in the industry and awarded contracts worth more than RM8.3 billion.
The 18 organisations participating in the VDPx are:
Petroleum Arrangement Contractors (PACs):
- ExxonMobil Exploration and Production Malaysia Inc.
- Hess Exploration and Production Malaysia B.V.
- Kebabangan Petroleum Operating Company Sdn Bhd.
- REPSOL Oil & Gas Malaysia Limited.
- Murphy Sarawak Oil Co., Ltd.
- Sarawak Shell Berhad/ Sabah Shell Petroleum Company Limited.
Oil and Gas Service and Equipment (OGSE) companies:
- Perbadanan Urusan Kejuruteraan dan Limbungan Brooke.
- Malaysia Marine and Heavy Engineering Sdn Bhd.
- Serba Dinamik Holdings Berhad.
- Uzma Engineering Sdn Bhd.
- Asian Supply Base Sdn Bhd.
- Sapura Energy Berhad.
- Schlumberger WTA (Malaysia) Sdn Bhd.
- Halliburton Energy Services (M) Sdn Bhd.
- Velesto Energy Berhad (Formerly known as UMW Oil & Gas Corporation Berhad).
- Deleum Berhad.
- Eastern Pacific Industrial Corporation Berhad.
- Petra Resources Sdn Bhd.
Read the article online at: https://www.worldpipelines.com/business-news/31072018/petronas-expands-its-vdp-programme/
You might also like
Gas and LNG prices pick up slightly
Prices pick up slightly but continue to remain deflated worldwide; prices did not respond as they did in 2022 despite disruption of gas pipeline supplies in Europe by multiple maintenance works.