Deals Monitor

Petronas awards TA4MS contracts to 17 local vendors

Source: New Straits Times

Petroliam Nasional Bhd (Petronas) has awarded long-term Master Service Agreement (MSA) for Integrated Turnaround Main Mechanical and Maintenance Mechanical Static (TA4MS) to 17 local contractors, in a move to streamline its plant turnaround and daily maintenance vendor management.

Out of the 17 contractors, five are joint ventures (JVs) between local and foreign companies with the Malaysian partners leading the collaborations.

Through these JVs, the local contractors could leverage on their international partners? expertise to increase their capabilities and accelerate their growth, Petronas said in a statement today.

Petronas said all the contractors had also been appointed as Petronas? Vendor Development Programme (VDP) anchor companies, to extend their knowledge and assistance to smaller industry players within their ecosystem.

TA4MS will cover all onshore facilities encompassing upstream and downstream, including the liquefied natural gas (LNG) re-gasification terminals (RGT) involving 28 operating units (OPUs) and is expected to deliver a cost savings of five per cent to 15 per cent over the next five years.

?The game-changing move, a consolidation of turnaround and daily maintenance contracts would provide local Oil & Gas Services & Equipment (OGSE) players with the avenue to increase their capability and capacity, while significantly achieving cost savings for the national oil company,? vice president of group procurement, Samsudin Miskon said.

Samsudin said the approach to turnaround and maintenance contracting was timely, to meet an expected increase in demand, following the strong growth downstream, especially at the Pengerang Integrated Complex (PIC).

?This contract integration is in line with Petronas? long-term efforts to empower local vendors, to increase their competitiveness and heighten their resilience against the ever-evolving industry landscape.

?We hope more local companies will be able to undertake all turnaround and daily maintenance jobs in their entirety, offering plant and equipment reliability that would create more value,? he added.

The implementation of TA4MS will help to improve Health, Safety & Environment (HSE) standards, productivity and quality of work, reducing reworks and shortening schedules by avoiding repetitive tasks.

Source: New Straits Times