PERDASAMA: Petronas helped Bumi firms grow, says COO

Wednesday, October 16, 2013

Petronas helped Bumi firms grow, says COO

Y Bhg Datuk Wan Zulkiflee bin Wan Ariffin

EQUAL OPPORTUNITY: RM70b in contracts awarded to Malay-majority firms last year

KUALA LUMPUR: PETRONAS has always strived to maximise Bumiputera participation in the oil and gas industry and allegations that it is doing otherwise are not true.

Petronas chief operating officer Datuk Wan Zulkiflee Wan Ariffin said last year, 75 per cent of its contracts worth RM70 billion were awarded to majority owned Bumiputera companies.

"There were some years when the percentage was lower, especially when we gave refinery projects to foreigners, but the drop had not been that much. We would be concerned if the figures fell below 50 per cent."

Last year, the national oil company awarded RM52.48 billion in contracts to companies which were majority owned by Bumiputeras, compared with only RM29.35 billion in 2011.

He said when the country's oil and gas industry first evolved in the early 1970s, Bumiputeras comprised more than 90 per cent of agents in customs and domestic logistics. Over the years, the number of agents decreased to 20 per cent while self-operating vendors increased to 80 per cent.

"There are now big internationally competitive Bumiputera companies. This did not happen by chance. We increased our expectations of them and played a key role in getting vendors to where they are today."

Petronas has close to 4,500 licensed and registered vendors, 94 per cent of which are Bumiputera companies.

Wan Zulkiflee said under Petronas Dagangan, 91 per cent of the 882 service station dealers are Bumiputeras while for LPG stockists and dealers, 77 per cent, or 262 of them, are Bumiputeras.

However, in the industrial dealers business, Bumiputeras only comprised 34 per cent, he said.

On allegations of croynism, Wan Zulkiflee said this was nothing new to the corporation, adding that in situations when there are five bidders and only one winner, sore losers were to be expected.

"We have a chief integrity officer seconded from the Malaysia Anti-Corruption Commission and a few of its officers sit in our tender committee on key tenders. If we practise croynism, we welcome the evidence."

On the development of its marginal field, Wan Zulkiflee said because Malaysia lacked expertise in this area, it was only natural for Petronas to award the contracts to foreign players.

"These foreign players then select local players, like Scomi and SapuraKencana. We are not involved in this selection process."

On calls by DAP for the Auditor-General to audit its account, Wan Zulkiflee said it was already audited by external auditors and copies was sent to Parliament and made accessible.