Petronas launches new vendor devt scheme with 18 partners

Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin (left) and Minister of International Trade and Industry Darell Leiking with representatives from the organisations that will implement the VDPx.

KUALA LUMPUR: Petroliam Nasional Bhd has launched a  new vendor development scheme 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.

The national oil company said on Tuesday the scheme, called VDPx, would be under the company’s existing vendor development programme (VDP). It will carried out togther with major industry players in the country.

Petronas said this was was part of its initiative to boost the capabilities of local companies in Malaysia’s oil and gas (O&G) industry.

Under the VDPx, the six petroleum arrangement contractors (PACs) and 12 O&G 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.

The participants will be supported in the areas of business development, financial management, technical and ICT by seven agencies. The agencies are SIRIM Bhd; Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR); Malaysia 

Digital Economy Corporation Sdn Bhd (MDEC); MIMOS Bhd; National Institute of Occupational Safety and Health (NIOSH); Talent Corporation Malaysia Bhd (TalentCorp); and Association of Chartered Certified Accountants Malaysia (ACCA).

Petronas said the programme was launched at the Kuala Lumpur Convention Centre to mark its 25-year active involvement in developing local vendors since 1993. It was held  here.

Among those present to launch the VDPx were Minister of International Trade and Industry (MITI) Darell Leiking, Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin. 

Wan Zulkiflee said it was the national oil company's commitment to nurture local entrepreneurs to overcome high-entry barriers to the O&G 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 Memorandum of Understanding with these second-tier VDP anchors and industry enablers, marks a new dawn of collaboration within the oil and gas sector,” he added.

Darell said the government would 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 first is the research & commercialisation grant (GPPV) which has an allocation of RM30mil. The second is the capacity development programme for vendors (PPKV) which was allocated with RM31mil.

“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," he said.

Since the Petronas VDP was set up in 1993, it has helped 99 local companies thrive in the industry and awarded contracts worth more than RM8.3bil.

The 18 organisations participating in the VDPx are:

Petroleum Arrangement Contractors (PACs):

1. ExxonMobil Exploration and Production Malaysia Inc.

2. Hess Exploration and Production Malaysia B.V.

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