Schlumberger marks its 80th year in Malaysia in 2015. What has contributed to the company’s ongoing success here?

Our company celebrated its 80th anniversary in May 2015, and during that time, we wanted to demonstrate and celebrate our commitment to Malaysia. In collaboration with MIDA (Malaysian Investment Development Authority), we established the first Center for Reliability and Efficiency, which was a significant multi-million dollar investment. This initiative is part of a global transformation program launched by our CEO in June 2012. Despite the market challenges, including a significant decrease in oil prices since 2014, we remained committed to our investments and focused on improving efficiency and service delivery. Today, approximately 73% of our workforce in Malaysia consists of Malaysian nationals, with many holding leadership positions. We are proud of this diverse and talented team. Moving forward, we will continue to invest in Malaysia as it offers an attractive business environment, supported by facilities and incentives provided by organizations like MIDA and InvestKL.

What are some of the peculiarities of operating in this market?

To attract international organizations, Malaysia has been successful in facilitating business operations. This goes beyond providing land for operation; it includes offering financial incentives, which the country has excelled at. In terms of logistics, Malaysia’s proximity to Singapore has been advantageous, making business transactions easier and more efficient. Another factor that sets Malaysia apart is its abundance of national talent across various disciplines and levels. The country’s natural beauty and high quality of life make it an attractive destination for expatriates willing to live and work here. These factors have collectively created a competitive market environment. Additionally, Malaysia’s stability, both politically and financially, adds to its appeal as a secure and reliable business destination.

What impact have foreign firms had on the oil and gas sector in Malaysia?

Foreign firms have had a significant impact on the oil and gas sector in Malaysia. PETRONAS and the government recognize the importance of attracting foreign companies to develop the country’s oil and gas resources. Currently, up to 50% of blocks are being developed by foreign firms, ranging from major international oil companies to independent ones. The government also supports a unique model that encourages local companies to participate in exploration and production activities. As a result, companies such as SapuraKencana and Petra Energy have become key players in the industry, forming joint ventures with international counterparts. This diversity of business models is a unique characteristic of the Malaysian market. Despite global fluctuations, both major companies and independent players continue to show interest and investment in the Malaysian oil and gas sector.

You established a Research & Engineering (R&E) center in Penang in 2011. How successful has it been?

Technology innovation is a non-negotiable aspect of our business, and we allocate substantial resources to research and engineering globally, with an annual investment of over $1.2 billion. The R&E center in Penang focuses specifically on seismic manufacturing and project development. We expanded the facility last year, doubling its size to accommodate additional service lines such as logging and directional drilling services. Penang is already home to several electronic and mechanical institutes and a pool of talented individuals in these fields. Consequently, it is emerging as a regional hub with a particular emphasis on mechanical engineering. In Negeri Sembilan, we established a successful partnership under the local development program with a Malaysian company called Omni. Together, we develop and manufacture completion equipment, serving both the domestic Malaysian market and global markets, including Saudi Arabia. This project has proven to be a significant success, highlighting the capabilities and reach of our operations in Malaysia.