Sapura Energy’s Vital Role in the O&G Ecosystem
PETALING JAYA: The RM1.1 billion cash injection to Sapura Energy Bhd will help thousands of workers who graduated from the oil and gas (O&G) industry’s technical and vocational education and training (TVET) programmes.
Shamsuddin Amran, who heads the Bumiputera Economic Congress’s TVET cluster, emphasized the importance of Sapura Energy in the O&G ecosystem as it obtains services from more than 2,000 vendors.
A Key Player in the O&G Ecosystem
Sapura Energy plays a key role in the O&G ecosystem as it engages the services of more than 2,000 vendors. Shamsuddin explained that Bumiputera TVET workers make up the largest portion of employees at these vendors, and would have been at risk of unemployment unless the government intervened.
Job Security for Thousands of Workers
"There is high demand for services in the oil and gas industry. Petronas and Shell require Sapura Energy’s services. The government wants to help save these jobs while helping to grow the sector, and that’s good," Shamsuddin said.
"If this cash injection is managed properly, the job opportunities for many Bumiputera workers will remain secure."
Developing a Skilled Workforce
Shamsuddin acknowledged the role played by Sapura Energy in developing a skilled workforce among the local population, with some workers going on to take up employment in the oil and gas sector abroad. Since the introduction of its TVET initiative in 2019, the company has successfully trained hundreds of students at the Sapura Fabrication Training Centre in Lumut, equipping them with crucial industry knowledge and skills.
Government’s Support for Sapura Energy
In June 2023, Sapura Energy entered into an agreement with the government which saw the company expand its TVET initiative to foster the development of a skilled workforce. The government’s support for Sapura Energy is aimed at helping the company to manage its cash flow and ensure the long-term sustainability of its operations.
Managing the Cash Injection
Shamsuddin also hoped that Sapura Energy’s new management would make full use of the government’s fund injection to avoid repeating issues such as delayed payments to its vendors.
Government Conditions for the Cash Injection
In a Bursa filing on March 11, Sapura Energy said the finance ministry, via its special purpose vehicle Malaysia Development Holdings Sdn Bhd (MDH), would be subscribing to the company’s redeemable convertible loan stocks worth RM1.1 billion. Last week, Permodalan Nasional Bhd (PNB), a significant shareholder of Sapura Energy, said the funds invested would be exclusively used to repay the O&G firm’s local vendors — most of which are small and medium enterprises involving approximately 59,000 workers.
Conclusion
The RM1.1 billion cash injection to Sapura Energy Bhd is a crucial step in supporting the company’s operations and ensuring the job security of thousands of workers. The government’s support is aimed at helping Sapura Energy to manage its cash flow and ensure the long-term sustainability of its operations.
FAQs
Q: What is the purpose of the RM1.1 billion cash injection to Sapura Energy Bhd?
A: The cash injection is aimed at supporting Sapura Energy’s operations and ensuring the job security of thousands of workers.
Q: How many vendors does Sapura Energy engage the services of?
A: Sapura Energy engages the services of more than 2,000 vendors.
Q: What is the role of Bumiputera TVET workers in the O&G industry?
A: Bumiputera TVET workers make up the largest portion of employees at these vendors, and would have been at risk of unemployment unless the government intervened.
Q: What is the purpose of the government’s TVET initiative?
A: The government’s TVET initiative is aimed at developing a skilled workforce among the local population, with some workers going on to take up employment in the oil and gas sector abroad.