Saturday, November 23, 2013

Sore losers behind anti-Bumi salvo against Petronas?

Bumi share up, not down. In my earlier posting Shamsul's RM100 billion in 3 years, I furnished numbers of the value of contracts awarded by Petronas to Bumiputera companies to show that the national oil corporation has never turned its back on the Malays, as claimed by some parties, including MTEM and an Opposition think-tank.  
Those numbers show that, contrary their accusations, Petronas has been doing more - not less - for the Malay companies. 
Despite that, I received e-mails from people asking me not to be lazy and to dig deeper. They said while the amount awarded Bumi companies may have increased, their share (percentage) vis-a-vis projects given to non-Bumiputera companies had dropped. That, they said, was what I should be concerned about.  
But that, I soon discovered, is yet another fallacy.  
Look at the table (and the accompanying notes):

In RM million

1980 - 2009
Majority Bumi
134,358 (51%)
25,974 (78%)
29,349 (91%)
52,483 (75%)
129,209 (49%)
7,326 (22%)
2,927 (9%)
17,524 (25%)

If anything, going by official stats, it is the non-Malay/Bumi and foreign companies who should be protesting. Their share of projects from Petronas has shrunk rather markedly, from 49 per cent in 1980-2009 to well below 20 per cent in the last three years! 
So excuse me if I wonder if those guys who are campaigning against Shamsul Azhar Abbas, the Petronas CEO, don't have some hidden agenda. 
Like, did someone's company lose in its bid for a project?

Additional notes for Table:

·         The 1980s through 1990s was the period where Petronas was building most of its plants – refineries, petrochemical and gas processing plants - where quite a bit of jobs went to the foreign contractors as the highly complex technologies / proprietary technologies required were not available locally. Malaysian companies’ participation was mandated at 30% with preference for Bumiputera companies.

·         Following the coming on stream of these plants, Bumiputera companies had the opportunities to participate in the Operation & Maintenance services. Current participation of Bumi-majority companies  in the O&M services is consistently above 70%. The remaining 30% is largely made up of foreign companies supplying OEM products and services.

·         From 2013 to 2018, Petronas will be embarking on several capital intensive projects, both in the upstream and downstream sectors (for eg: Gumusut-Kakap, Sabah Oil & Gas Terminal, Kebabangan, North Malay Basin, RAPID, Re-Gas Terminals, Floating LNGs etc).

·         At the project stage, the EPCC contracts to build these highly technologically complex facilities could only be awarded to foreign contractors with technical capability and capacity. Malaysian participation is projected to be about 20% through competitive bidding at sub-contracting levels. Please note that although the percentage of jobs that go to Bumiputera and local companies decrease when Petronas implements world-scale projects with niche/proprietary technologies, the absolute value of the contracts awarded to them could increase. 

 ·     Post-commissioning of these facilities (i.e. from 2019 onwards), the O&M contracts are projected to be about RM28 billion per year for the life cycle of the plants (average 25 years) and 70% of these are projected to go to Bumi companies.


  1. Anonymous2:09 pm

    Good try, bro.

  2. Anonymous4:22 pm

    Most of the bumi quota goes to scomi n sapura kencana.... Do more homework la roki

  3. Anonymous6:40 pm

    So whats the problem with scomi and kenchana?? A lot of my malay friends got job there with thousands other malay.. got for them

  4. Anonymous6:56 pm

    Appreciate if bro could also make some macro analysis such as the performance of Petronas subsidiaries such as Petronas Dagangan Berhad and Gas Petronas Bhd. You should not look only at the numbers, you should also interview people who have business deals with Petronas, PDB & GPB. They are the bumiputra vendors, service station dealers small suppliers.

  5. Anonymous7:24 pm

    True, most of them goes to Sapura Kencana,a reputable Oil and Gas , and pure Bumi management company . ....Please do not get me wrong but Sapura Kencana has been actively acquiring other smaller company to make SK as a formidable Bumi company offering services to PETRONAS and other oil and gas companies.

    Sadly,the best , the gem, Pengerang Job went to Chinabeng with Omar Ong ties

  6. Anonymous9:56 pm

    ya Petronas banyak membantu orang-orang Melayu, tapi Malayu dari UMNO saje, seperti Madey, Pak Lah and now Najib.
    Sudahlah Rocky, jangan buat cerita kelentong, rakyat dah pandai tapi rocky brute masih bodoh macam kerbau !

  7. Anonymous12:16 am

    the apek are lobying to remove Shamsul out la bro?.. They just cant leave the Malay alone..

  8. Anonymous1:33 am

    Shamsul got nothing to do with apek, lah. 'Non-bumi' here means foreign firms, most of which r far more highly qualified to tender than the MTEM cronies 4 Petronas jobs. Tapi dorang nak mintak sedekah.

  9. Anonymous8:54 am

    Probably yes probably no.

    But most likely they are the sore losers.

    Suckers as they are, the recipient sre also the suckers.

    No one from the recipient of the billions which Petronas had awarded contracts to has come forward to defend their most important client.

    This is the problem - they appear as ungrateful lot, probably undeserving.

    We have a situation in this country where Cinabeng is ungrateful and the Contract recipients are arrogant and ungrateful as well.

    What is happening in this country??

  10. Anonymous11:15 am

    Someone needs to list out in detail all the Cinabeng-controlled companies that have received large PETRONAS contracts in (let's say) the last five years.

    And what the contracts were for.

    This is an expose just waiting to happen!

  11. Anonymous12:31 pm

    what ever tolong lah tambah biasiswa PETRONAS kepada tahap dahulu , ini untok masa depan, PETRONAS cukop modal insan hari kerana dasar 20-30 tahon dulu jadi kalau nak relevant 10-20 masa hadapan eloklah melobor sekarang , berilah biasiswa macam tahon2 1990-2000's............

  12. Mazlan7:40 pm

    We are talking about an industry that has very high risk both commercially and safety wise. Thus it in not an industry for amateurs. Vendors need to be selected on merit with good track records. Thus for Petronas to find the number of bumi vendors that meets those standards is commendable.

  13. Whats Wrong With Petronas!8:57 pm

    What is the problem with Sapura and Kencana?
    Sapura belongs to that Samsuddin Kader yes and Indian.
    And Kencana belong to the son of UMNO Presiden Mahathir an Indian from Kerala!

    That is what is wrong with Sapura and Kencana. Are they really Malays in the kampung or like you and me.

    How come We dont feel the Petronas billions. The distribution of Petronas oil belongs to all Malays not just Mahathir sons and friends. Or Paklah sons scomi and IJM chinese.

    We can control the fair and equitable distribution of Petronas oil and gas if we have the political power to ask Petronas to give jobs to trust funds companies belonging to Epf, TAbung Haji and PNB so that the Malays have a higher rate of returns.

    Not just making a few UMNO Presidents families billionaires. As it is some Indians and Chinese are probably pulling Najib and PEtronas strings.

  14. apa lah bising ni. petronas managed by malays. they are big and strong. have you seen pertamina and other nogcs. how many are in the forbes list? who they give contracts to is not as important as the contracts that they get.kalau dia takde bizness macam mana nak bagi bizness. org melayu dah biasa menadah, sampai mati pun nak menadah. kontak bagi org bukan melayu marah, bagi kat melayu marah. pegi dah! korang ingat kontrak bole bahagi bahagi supaya sume kontraktor melayu bole dapat. kontrak bukan duit braders. kontrak ialah tanggjawab yg belum tentu bole jadi duit.

  15. Waris Pribumi11:08 am

    Datuk Rocky,

    sore losers. sour grapes.

    they think the oil and gas business is jual ikan jual buah business.

    It is highly specialised. must meet highest international standards.

    I have no love, no interest in Kencana Sapura.

    They got petronas contracts. They don't deserve the contracts? Unfair? Why? They not good?
    There are other deserving BUMIPUTRA companies
    in the oil and gas business?

    Dengki lah no.

    Or Melayu bunuh Melayu.

    Itu lah orang Melayu tidak bisa maju...

  16. Presiden UMNO dan Kekayaan Petronas10:27 pm

    The Malays, UMNO developed Petronas from nothing. It is just right that the Malays get the wealth from Petronas.
    Bukan anak anak Presiden UMNO sahaja yang merasa jadi bilionair.
    Orang Melayu yang membangunkan UMNO dan Petronas yang mewakili semua UMNO. Jangan biarkan Presiden UMNO mengaut keuntungan bersama kroni cina dan India mereka seperti Ananda Krishnan.
    Ahli UMNO perlu sedar. Presiden-PResiden UMNO dari Mahathir, Pak Lah dan Najib mencuri kekayaan Petronas dan bagi subsidi kepada Cina sehingga mereka kaya raya dan sekarang menghina pula ahli UMNO dan orang Melayu. Jangan biarkan Melayu celup bunuh Melayu ahli UMNO amnya.