KUALA LUMPUR: The Malaysian Oil & Gas Services Council (MOGSC) is urging the national oil company Petroliam Nasional Bhd (Petronas) to prioritise local companies when handing out contracts in the energy sector.
The council said this is crucial to ensure that the overall ecosystem in Malaysia gain from such an award, creating multiplier effects that benefit the nation.
Specifically for new businesses relating to the energy transition agenda, MOGSC requests that Petronas extends the commitment to increase the participation of local players to these ancillary businesses which are not regulated under Petroleum Development Act 1974.
Gentari, despite being a subsidiary and might not be governed by Petronas procurement processes, will also need to make clear their procurement processes to enable local capable Malaysian companies take opportunities and prepare for strategic growth for the nation, said MOGSC.
"We also urge Petronas to realign the oil and gas services and equipment (OGSE) ecosystem through its licensing and registration and ensure companies that had gained reasonable track records and invested into the segment to be given proper consideration. "This is an ongoing initiative and we are following through consistently," said MOGSC in a statement today.
The council also asked that for contracts beyond the capacity of local companies, a consortium or partnership with foreign entities is encouraged so that in the event of an award, local companies can benefit from technologies transfer and gain necessary expertise and experience to be ready for future tenders.
"We firmly believe this is part of the sustainable initiatives to the local industry and affirm local OGSE's readiness for cooperation," it added.
OGSE segment in Malaysia has 50 years of track record in supporting Petronas in nation building through the oil and gas industry.
"We have built a resilient, competitive and sustainable ecosystem that will continue to support Petronas to move forward while navigating its energy transition agenda. "It is paramount for Petronas to continue nurturing capacity and capability to ensure local OGSE players prosper domestically and internationally," it added.