CHAMBER URGES PETRONAS TO LIFT LICENCE FREEZE

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Chamber urges Petronas to lift licence freeze

KOTA KINABALU Nov 4, 2011: A call was made to lift the freeze on upstream oil and gas industry licences to allow Sabah-based contractors to bid for projects next year.

Malay Chamber of Commerce Sabah president Datuk Awang Buhtaman Awang Mahmun in making the call, said the recent announcement by Petronas on the RM45 billion mega project in Sabah had created a lot of interests among local contractors who were willing to grab the opportunity and be part of it.

He said the suspension was announced through an official letter from Petronas, with the reason of upgrading their database.

“But the suspension to renew licenses will not allow us to be part of the project. We are expecting a lot of invitations to bid next January but since our licenses are not renewed, which is part of the requirement, we will not be able to take part,” he said.

Petronas recently announced that it will implement a new license and registration application system, which will take effect on January 1 next year, to replace the existing eLARIS.net system.

In preparation for the smooth implementation of the new system, all applications for licenses and registration will be frozen from October 1 to December 31, this year.

Speaking to reporters during the Sabah Oil and Gas Forum 2011: The Way Forward yesterday, Buhtamam also said the non-existence of registration and renewal counters in Sabah were among the setbacks faced by Sabah contractors.

“This is for long term. Currently, we have to do it manually, fly to Kuala Lumpur to renew our licences. If there is a missing document, we are required to produce the whole set of documents instead of just replacing the missing one. This is the requirement insisted by Petronas, it is very stringent. The whole process takes time, a lot of hassle.

“We also believe that there should be an instrument to enhance the participation and capacity on the part of local Sabahans to start off with the vendor development programme (VDP) in Sabah.

He disclosed that Petronas has yet to call them to brief on the new system.

Petronas Sabah and Labuan general manager Joseph Podtung, when asked, said there was no plan to set up registration and licence renewal counters in Sabah as it can be done online.

“Be it in Kota Kinabalu or Kuala Lumpur, you can do it online. The only thing is the lack of understanding as the system is quite new in Sabah.

“I would think that having a counter in Sabah may not be the solution because one can just go online, and if there is any doubt, our office is open. The contractors may refer to us to get better understanding of the requirements and filling up the forms. It is unnecessary to have a counter because we have staff with experience handling such matters here,” he said.

On introducing VDP in Sabah, Podtung said that it is open to Malaysians to work closely with Petronas on any oil and gas related projects.

“But it is important for the contractors to identify the niche of their product which can be developed, which not only can be supplied within Malaysia but how we (Petronas) can vend it outside (the country),” he said.

Basically, he explained, the VDP aims at creating entrepreneurship that is able to draw in the niche services that the contractors can provide.