The Edge Markets
23 February 2019
Petronas teams up with more banks for financing solutions for OGSE vendors
KUALA LUMPUR (Feb 22): Petronas is collaborating with another five financial institutions to provide financial solutions to Oil & Gas Services and Equipment (OGSE) vendors, via the Vendor Financing Programme for subcontractors, mid-tier and large companies in the sector.
Petronas presented Memoranda of Understanding (MoUs) on the programme to five banks — Export-Import Bank of Malaysia Berhad, HSBC Bank Malaysia Berhad, Maybank, RHB Islamic Bank Berhad and United Overseas Bank (Malaysia) Bhd.
The Vendor Financing Programme aims to improve access to financing and liquidity to local OGSE vendors, particularly subcontractors, where successful applicants will benefit from competitive rates and efficient financing processes from participating financial institutions.
Petronas has roped in more than 20 major local Maintenance and Engineering, Procurement, Construction & Commissioning (EPCC) contractors and their subcontractors for collaboration in validating their financing applications.
The MOU ceremony was graced by Minister of Entrepreneur Development Datuk Seri Mohd Redzuan Md Yusof and attended by key personnel from the participating banks and members of Petronas’ management.
A small and medium enterprise (SME) Vendor Financing Programme for the OGSE vendors, a collaboration with Bank Islam Malaysia Berhad and Syarikat Jaminan Pembiayaan Perniagaan (SJPP), launched in May 2018, has to-date, recorded approved financing amount of more than RM140 million to SMEs that have direct contracts with Petronas.
Petronas President and Group Chief Executive Officer Tan Sri Wan Zulkiflee Wan Ariffin said the participation of more financial institutions is a testimony to the success of the programme.
“Driven by our responsibility to nurture and shape the Malaysian oil and gas sector, Petronas constantly seeks innovative solutions for the mutual benefit of all parties in the ecosystem — more so in the increasing volatile business environment that we operate in today.
"Today’s MoU ceremony signifies the commitment shown by the participating financial institutions towards this effort which plays a crucial role in supporting Petronas’ efforts towards shaping a vibrant oil and gas ecosystem,” Tan Sri Wan Zulkiflee said.
The participation of the main contractors in this programme also provides the additional support needed by subcontractors to secure financial assistance in carrying out their functions. It also largely signifies the shared commitment towards strengthening the industry as a whole,” he highlighted.