5.3.

0 Operation of Petronas in Sudan

Petronas is the second largest investor in Sudan’s oil and gas industry immediately after
China. The table below shows the main oil companies in Sudan and South Sudan. As we
can observe, Petronas holds a large stake in Greater Nile Petroleum Operating Company
(GNPOC), Greater Pioneer Operating Company (GPOC), Dar Petroleum Operating
Company (DPOC), Sudd Energy Operating Company (SPOC). Upstream & downstream,
operate in what city? Acquire Mobil. Government.

5.3.1 Global Standards of Governance, Transparency and Ethical Conduct

With its international operation, Petronas adopt global standards of governance. Petronas
Code of Conduct and Business Ethics (CoBE) is a general reference that can be use in all
countries and the Petronas Corporate Sustainability Framework as well as relevant
commitments are central in delivering optimum shareholder value. However, their policies
are aligned to applicable laws and regulations of countries where it operates. The Executive
Leadership Team (ELT) assists the President and Group CEO in managing strategic
business development plan including international business issues of Petronas Group
(Governance and Ethics, n.d.).
5.3.2 Human Capital Development in Sudan
Petronas focuses in adding value to the local skills and capabilities of the people towards
long term sustainable growth. Despite the world oil price crisis, Petronas remains
committed to strengthen education and human capital development. There is a strategy
called “Sudanisation Programme” which is spelt out in the Production Sharing Agreement
(PSA) with Sudan. In this programme, Petronas had provide technical support by
developing the expertise and capability of local Sudanese in the oil and gas industry.
Petronas Research and Scientific Services (PRSS), a subsidiary of Petronas, has established
the petroleum laboratory in Khartoum (Petronas Contributing Towards Well-Being Of
Sudan, 2000).

With focus on people and capability building, Petronas has established the Khartoum
Vocational Training Centre to develop skilled craftsmanship among Sudanese. The centre
provides training in automotive and refrigeration technologies (Petronas Group
Sustainability Report 2007, 2007).

Moreover, Petronas has established Petronas Mobile Library programme to encourage

good reading habits in Sudan. The programme has been extended to include the setting up
of permanent school libraries in Khartoum and mobile libraries in Juba, southern Sudan.
Petronas also offers scholarship to Sudanese students to study at Universiti Teknologi
Petronas in Perak so that they can serve Petronas at their hometown after they graduate.

5.3.3 Committed to Health, Safety and Environment (HSE) Excellence

Petronas is committed to excellence in Health, Safety and Environment (HSE) performance
as an element of its Operational Excellence Framework. It holds the highest standard to
safeguard the environment, the communities surrounding, its operational sites and its
employee from unacceptable risk (Health, Safety & Environment, n.d.). Petronas has
actively carry out the community projects in countries where it operates and work closely
with local governments to provide basic needs such as safe drinking water, shelter and
healthcare to the Sudanese.

For instance, Petronas had implementing Health Risk Assessment (HRA) across its
operations in one of the Petronas Carigali joint operation in South Sudan. The findings of
the assessment have shown that health hazard in Sudan are different from the operations in
Malaysia, which means different safety measures to be adopted. The implementation of
HRA by Petronas is a powerful tool to assist management in setting up its Health Program,
minimizing workers’ health risks and consequently providing a healthy workforce (Mydin,
Usul, & Zainudin, 2008).