FINANCIAL SOLUTIONS FOR REGISTERED LOCAL OGSE VENDORS
Petronas, MOGSC and MOSVA facilitate access to financial institution partners.
PETRONAS, in collaboration with the Malaysian Oil, Gas and Energy Services Council (MOGSC) and Malaysia OSV Owners Association (MOSVA), recently hosted the Petronas Vendor Financing Programme (VFP) Conversation Day aimed at connecting vendors in the oil and gas service equipment (OGSE) ecosystem with VFP’s partnering financial institutions to explore viable financial solutions.
The VFP is initiated to facilitate access to financing for its registered local OGSE vendors from nine of the programme’s strategic partners – Bank Islam, Bank Muamalat, Bank Rakyat, CIMB, Export-Import Bank Malaysia Berhad (EXIM), HSBC Bank Malaysia Berhad, Malayan Banking Berhad (Maybank), RHB Bank and UOB Malaysia.
“VFP was mooted to assist Malaysian OGSE vendors adversely affected by the oil price crisis in 2018 in securing working capital and improving their cash-flow to sustain their businesses,” said Petronas Strategic Programme and Licensing of Group Procurement head Natrah Mohd Tahir.
“Now compounded by the impact of the prolonged pandemic, it is timely that we intensify our efforts to support our vendors who all play an important role in the oil and gas ecosystem,” she said at the event attended by about 200 participants.
SJPP support
VFP is supported by Syarikat Jaminan Pembiayaan Perniagaan (SJPP), which provides guarantee schemes as an alternative to collateral requirements by the banks.
Vendors will have access to financing facilities that cater to their specific needs to perform their contract obligations.
“The collaboration between Petronas, MOGSC and MOSVA is pivotal to ensure that VFP will benefit our OGSE vendors,” said Natrah.
“The survivability of the OGSE ecosystem lies not only in vendors being able to sustain during trying times, but also to be able to grow in tandem with the industry and reach their full potential.”
She said the programme continues to make a positive impact on the industry with more than 260 applications and RM1.6bil worth of funding approved as of July 2022.
Fruitful partnership
“On behalf of MOGSC, we are pleased with the collaboration between MOGSC and Petronas which aims to ensure the survivability of OGSE vendors,” said MOGSC president Syed Saggaf Syed Ahmad.
“Petronas and MOGSC have worked together to provide the VPF platform whereby vendors and financial institutions are able to converse and provide financing assistance.”
MOSVA honorary secretary Datuk Roslan Ahmad said: “We are delighted and honoured to be given the opportunity to collaborate with Petronas and MOGSC for this event.
“This is a testament that collaboration between corporations and industry associations is pivotal in ensuring a healthy ecosystem.”
Ir Mahmood Azmy, CEO of engineering service organisation MECIP, said: “We thank Petronas, MOGSC and also Bank Islam for assisting us.
“With the VFP programme, we are able to grow our business.
“We look forward for any collaboration between financial institutions and corporations in the future.”