Since its establishment in 2004, Perdana Petroleum Berhad continues to be a leading provider of offshore marine services for the upstream oil and gas industry.
The company is one of the few Sarawak publicly listed companies that is a seasoned player in the marine services sector specialising in offshore support vessels (OSV).
Starting off with six marine vessels, Perdana Petroleum is now one of the largest offshore OSV players in Malaysia with a fleet of 15 vessels.
The company owns and operates its fleet to support an array of offshore activities including exploration, development, facilities installation, hook-up and commissioning, production, operation as well as maintenance.
In an exclusive interview with the New Sarawak Tribune, managing director Jamalludin Obeng shared about the company’s new office branch in Miri and what Perdana Petroleum has set its eyes on achieving for this year.
He said Perdana Petroleum’s vision has always been to be the leading and preferred offshore marine operator for the upstream oil and gas industry in the region.
He also said the company has stayed resilient during the difficult years of low oil price and the COVID-19 pandemic.
“The 2015 oil price slump and the more recent upheavals caused by the COVID-19 crisis have tested our mettle.
“It is through the resilience and commitment of our team that we have not only weathered these storms but emerged stronger, more adaptable, and ready for the opportunities that lie ahead,” he said.
What led to the decision to establish the new office branch in Miri?
Approximately 60 per cent of onshore and offshore activities of the oil and gas sector in Malaysia are offshore in Sarawak while the rest is in Sabah and Terengganu, so Sarawak is a very important market.
Miri has traditionally been and still is the centre of activities for the oil and gas sector including support services – that is why we need to be here.
The establishment of a new branch office in Miri is more than just a business expansion as it symbolises a new chapter for Perdana Petroleum, and it is an integral part of our identity.
It is also a testament to our growth, adaptability, and unwavering commitment to excellence.
How does Perdana Petroleum plan to leverage its new office in Miri?
The new branch office in Miri also signifies Perdana Petroleum’s commitment to have a platform to increase the local Sarawakian content in offshore supply services which we are actively involved in.
Presently, 45 per cent of our workforce including the offshore crew are Sarawakians, and we intend to increase this percentage further.
We also want to engage with more local subcontractors such as catering companies and shipyards that can undertake vessel maintenance to support our operations.
Are there any plans to increase the percentage of Sarawakians in Perdana Petroleum’s workforce?
Some of the initiatives that are in the pipeline include conducting active recruitment and raising awareness about the employment opportunities in this sector.
Unfortunately, there is a lack of awareness on the employment opportunities in this sector among the public so we want to educate Sarawakians, especially the young ones.
There are some perceptions on how working offshore is very tough, but this is not the reality of things. With proper trainings and mindset, working offshore can be very rewarding plus accommodations, meals and proper facilities such as internet accessibilities are also provided on board.
As such, we want to create awareness among the youth on this and how they have the potential to have lucrative earnings perhaps two to three times more as compared to other sectors onshore.
Can you share Perdana Petroleum’s view on the current trend in the oil and gas sector?
We largely use the annual Petroliam Nasional Berhad (PETRONAS) Activity Outlook report as our guidance for our planning.
Currently, they projected a steady increase of activities for 2024 in the offshore support services activities followed by a stable subsequent two years.
So it does appear that the next two to three years will be a period of sustainability for offshore support vessels business.
However, our visibility beyond that timeframe is limited, a similar challenge with other industrial sector where long-term projections are difficult.
Currently, I need to highlight that another key focus in the oil and gas industry is shifting towards enhancing efficiency and adopting greener practices, particularly with an emphasis on decarbonisation.
It is crucial to emphasise our awareness and sensitivity to the growing demand for ESG and decarbonisation in our business.
Thus, we are committed to exploring ways and initiatives on how we can align with these environmental considerations.
How does Perdana Petroleum plan to approach its fleet expansion in response to potential long-term charter contracts in the coming year?
For Perdana Petroleum to be a sustainable OSV player in the long run, it is important for us to start on our fleet renewal within these two years.
This will include construction of new vessels and phasing out of older assets.
The reason for this strategic move is that the average age of our fleet this year is nearing 13 years, thus necessitating a timely renewal process to maintain operational efficiency and compliance with industry standards. The time required for planning and construction of new vessels by itself will take at least two years.
In line with Sarawak’s vision for a sustainable future, we are actively exploring greener features for vessel options when it comes to the renewal of our fleet.
We are also actively seeking to align ourselves with Sarawak’s forward-thinking goals under our visionary Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
Perdana Petroleum’s share price has seen a notable increase. What factors contribute to the company’s market performance and how does Perdana Petroleum maintain a competitive edge in the offshore support services sector?
Firstly, the core pillars of success lie in ensuring efficiency and safety in our operations. We have established a commendable track record with our clients which underscores our commitment to these principles.
Secondly, since the end of the COVID-19 pandemic, we have seen an increase in offshore activities in the year 2022 and 2023. This has resulted in higher vessel utilisation and higher charter rates.
The charter rates saw an increase averaging 15 to 20 per cent in 2022 and 2023. Perhaps some increase in charter rates will continue for this year with the increase in demand for offshore support vessels.
Both factors have contributed to Perdana Petroleum’s better results up to the third quarter of 2023.
To maintain a competitive edge in the offshore support services sector, we will continue to maintain and take good care of our vessels. They (the vessels) are our prized assets which can generate good income.
We are one of the largest OSV players in the country with a fleet of 15 vessels ranging from Accommodation Work Barges (AWBs) to Anchor Handling Tugs Supply (AHTS) vessels.
Lastly, can you share about the corporate social responsibility (CSR) programmes that Perdana Petroleum will undertake?
Our CSR programmes will continue to focus on educational needs of the underprivileged children.
For instance, Perdana Petroleum together with our holding company, Dayang Enterprise Holdings Berhad recently made a meaningful contribution of goods and equipment worth approximately RM40,000.
This contribution, which consists of the school’s equipment and students’ educational needs will be channelled to SK Long Bemang, Marudi.
We are committed and passionate in making a positive impact on education, community development, and the overall wellbeing of students in underserved areas.
From our contribution, we hope that it will make a meaningful step towards making a positive impact on the lives of these young learners.
