Transparency, access to information vital for sector’s progress

KUALA LUMPUR: Transparency in the oil and gas (O&G) sector is the way forward for the industry to progress, said Malaysian Petroleum Resources Corporation (MPRC) president and chief executive officer Datuk Shahrol Halmi.

He said transparency and access to information were essential for O&G players to make plans and strategise for the companies’ direction.

“With the recent low oil prices which the industry didn’t see coming, it became clear to us how planning is crucial for local players in managing their resources.

“If we can move towards a model that makes O&G a transparent industry, it would hugely help the players to plan hiring, capital expenditure and technology, and create less wastage in the value chain.”

He said it would also reduce inefficiencies in capital allocation.

“If you have information on business opportunities for a company, proper resources and capital planning can be carried out. While it is a cyclical thing that happens to any industry, it shows us planning could have saved some of the companies and given an alternative to cope with the new normal,” he said.

Shahrol said it is also a crucial for businesses to relook future strategies or directions, thus paving the way towards financial restructuring which is a key issue under the current crude oil price climate.

Recently, Petroliam Nasional Bhd (Petronas) made known jobs or contracts to be awarded in the next three years, which it has not done before.

On the need for such transparency, Petronas president and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin had said this would enable proper planning by product-sharing contract companies and the industry as a whole.

He said Petronas has made tentative work programmes, such as potential contracts, on a rolling exercise to be made available to companies registered with the O&G giant.

“This will be an annual exercise. It is not a commitment on our side but a sharing of information on what our plans are.

“If all our service providers can plan better, it would be better for the whole industry. We have our plans, we should also share them with our service providers so that they can plan as well,” he was quoted saying.

In pushing for consolidation, Wan Zulkiflee said this would be key input for the companies to have a feel of the market in the next few years. Zarina Zakariah