North Java Sea Group gets slice of Petronas’ cake

Malaysian oil company Petronas today appointed a Sarawak-based company, North Java Sea Group Sdn Bhd (NJS) under its Vendor Development Programme (VDP).

North Java Sea Group gets slice of Petronas' cake
PETRONAS’ Senior General Manager of Group Supply Chain Management, Norliza M Nawi exchanging document with North Java Sea Group Sdn Bhd’s Managing Director, Abdillah Yasin after signing the agreement. It was witnessed by Sarawak’s Minister of Industrial Development, Datuk Amar Haji Awang Tengah Ali Hassan (centre).

The North Java Sea Group Sdn Bhd, which is a small-medium enterprise (SME) company specialising in oil and gas industry, will manufacture and provide rope-based equipment for PETRONAS’ offshore facilities and installations in Sarawak.

“The appointment of NJS under the VDP signifies PETRONAS’ continued efforts to develop oil and gas-related SMEs from the states where PETRONAS operates,” said PETRONAS’ Senior General Manager of Group Supply Chain Management, Norliza M Nawi.

She added the VDP would help the local SMEs up-skill their capabilities through guidance and standard set by PETRONAS in order to meet industry requirement for relevant products and services in the state like Sarawak which has oil and gas industry. The opportunity also assists SME to strengthen and grow their businesses.

Norliza was speaking after the signing ceremony for the appointment of NJS in Bintulu, which was witnessed by Sarawak’s Minister of Industrial Development, Datuk Amar Awang Tengah Ali Hassan. NJS was represented by its Managing Director Abdillah Yasin.

Under the programme, NJS will manufacture emergency escape rope ladder, pilot ladder and personnel transfer basket which are currently sourced from outside Malaysia.

These life-saving equipment are used at platforms and marine vessels to ensure the safety of the personnel during theirs transfer from vessel or helicopter to platform and vice versa.

Established in Miri, NJS is currently the only company in Malaysia that manufactures such equipment.

The company’s emergency escape rope ladder called ANZICTM was developed through in-house research and development and the design of the equipment was registered with Intellectual Property Corporation of Malaysia (MyIPO) in 2010.

PETRONAS’ local vendor capability development is shaped through its licensing policy to develop resilient and competitive Bumiputera vendors as well as Malaysian entrepreneurs in oil and gas-related manufacturing and technical services.

Since the formation of PETRONAS, participation of local agents has now largely evolved to become active and capable owner operators.

To-date PETRONAS has 439 work scopes dedicated for owner operators, where they compete on merit basis for contracts.

In 2013, 1,200 Bumiputera vendors have been the successful recipients of contracts under this competitive vendor development approach. Other forms of vendor development initiative covers import substitution categories, critical growth areas and development of SMEs.

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Press Release, April 22, 2014