Petronas launches new VDPx scheme
Petronas President and Group CEO Datuk Wan Zulkiflee Wan Ariffin

by ALIFAH ZAINUDDIN / pic by TMR file

PETROLIAM Nasional Bhd (Petronas) has introduced a new vender development programme (VDP), which is expected to benefit more Bumiputera vendors in the oil and gas (O&G) industry.

Under the new scheme known as VDPx, 18 organisations — comprising six petroleum agreement contractors (PACs) and 12 O&G service and equipment (OGSE) companies — will replicate Petronas’ existing VDP programme to further amplify its benefits throughout the industry and nation.

Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin (picture) said the collaboration reflects Petronas’ 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.

“VDPx, an evolution of the current VDP, is initiated to further develop capabilities within the O&G 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 a memorandum of understanding (MoU) with these second-tier VDP anchors and industry enablers marks a new dawn of collaboration within the O&G sector,” he said in a statement after the VDPx MoU signing in Kuala Lumpur yesterday.

Among the PACs involved are ExxonMobil Exploration and Production Malaysia Inc, Hess Exploration and Production Malaysia BV and Murphy Sarawak Oil Co Ltd. Some of the OGSE companies include Malaysia Marine and Heavy Engineering Sdn Bhd, Serba Dinamik Holdings Bhd, Uzma Engineering Sdn Bhd, Sapura Energy Bhd and Velesto Energy Bhd (formerly UMW Oil & Gas Corp Bhd).

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 Bhd, Centre for Entrepreneur Development and Research Sdn Bhd, Malaysia Digital Economy Corp Sdn Bhd, Mimos Bhd, National Institute of Occupational Safety and Health, Talent Corp Malaysia Bhd and the Association of Chartered Certified Accountants Malaysia.

Also present to launch the VDPx was International Trade and Industry Minister Darell Leiking.

“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,” Darell said in his speech.

He said vendors have access to two programmes under the 11th Malaysia Plan, namely the Research & Commercialisation Grant, with an allocation of RM30 million, and the Capacity Development Programme for Vendors, with an allocation of RM31 million.

“It is the government’s aspiration for anchor companies to participate in such development programmes to nurture Malaysian small and medium enterprises 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.

Since its establishment in 1993, Petronas’ VDP has helped 99 local companies thrive in the industry with contracts worth more than RM8.3 billion awarded.