UNCTAD

17th Africa OILGASMINE, Khartoum, 23-26 November 2015

Extractive Industries and Sustainable Job Creation

Building Institutional Capabilities:

PETRONAS' journey in Human Capital Development

By

Mohamad Yusof Shahid

Chairman, PETRONAS Sudan Operations

The views expressed are those of the author and do not necessarily reflect
the views of UNCTAD.
Building Institutional Capabilities:
PETRONAS' journey in Human Capital
Development

Presented by Mr. M Yusof Shahid

Chairman, PETRONAS Sudan Operations

© 2015 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be reproduced, stored

in a retrieval system or transmitted in any form or by any means
(electronic, mechanical, photocopying, recording or otherwise) without
the permission of the copyright owner.

©Petroliam Nasional Berhad (PETRONAS) 2015 1

AGENDA

PETRONAS is a Major Multinational Oil and Gas Company

01 PETRONAS: Structured Approach for Human Resources Development

02 PETRONAS in Sudan

04 The Future

© 2015 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be reproduced, stored

in a retrieval system or transmitted in any form or by any means
(electronic, mechanical, photocopying, recording or otherwise) without
the permission of the copyright owner.

©Petroliam Nasional Berhad (PETRONAS) 2015 2

 Agile Development & Growth
Transformation of an NOC into a global energy champion
REVENUE
(USD bil)

Domestic Regulator Domestic Player Going International Global Player

100
Ventured into
• Ventured into Iraq 2009
Turkmenistan
• Acquired Engen
Ltd
2012
Duyong - 1st
1996 Acquired Progress
upstream gas
60 Energy Resources
PETRONAS was production
incorporated on 17 Aug
1984
1974
Startup of 1st 3-phase PGU 1997
Refinery at project 2008
Kertih (1984-1997) Entered Sudan &
Myanmar
• Acquired FL Selenia
30 1983
• Acquired stakes in Gladstone Liquefied
Natural Gas Project in Australia
Introduced and signed
1st PSC to replace 1st LNG shipment to 1991
concession system Japan
1st major
Opened 1st international
1981
retail station venture in
1976
Vietnam
Expanded into
1980
Petrochemicals
0

YEAR

©Petroliam Nasional Berhad (PETRONAS) 2015 3

What Makes Us Unique
Commitment to sustainable development and human rights

Incorporated as Professionally Good corporate

a company managed citizenship

Autonomous Global standards of

Commercially decision-making by governance,
oriented Executive transparency and
Management ethical conduct

Maximize value and Commitment to

wealth creation for Oversight by Board sustainable
shareholders of Directors development and
human rights.

©Petroliam Nasional Berhad (PETRONAS) 2015 4

 Custodian of National Resources
Working closely with ministries to develop the national petroleum sector

Prime Minister

Ministry of
Ministry of Ministry of Ministry of
Prime Domestic
Energy, Green Natural Ministry of International
Minister’s Trade, Co-
Technology Resources & Finance Trade &
Department operatives &
and Water Environment Industry
Consumerism

Malaysian Custodian-
Department of Economic Investment manages the
Environment Planning Unit Development petroleum
Authority resources of
the Nation

PS
Contractors/
Operators

©Petroliam Nasional Berhad (PETRONAS) 2015 5

Our DNA
Vision, mission and values driving strong performance

Vision: To Be A Leading Oil and Gas Multinational of Choice

Mission Shared Values

• We are a business entity • Loyalty

• Petroleum is our core business • Integrity

• Our primary responsibility is to • Professionalism

develop and add value to this
national resource • Cohesiveness

• Our objective is to contribute to the

well-being of the people and the
nation

©Petroliam Nasional Berhad (PETRONAS) 2015 6

PETRONAS is a Major Multinational Oil and Gas Company

A Fortune Global 500 Company(1)

#69 #22 #6
most profitable oil
by revenue by profit and gas company

World-class Scale in Oil and Gas Production(2)

Large Scale Global Reach
(mmboe/d)
5.0

2.5
Fully Integrated Diversified Portfolio
0.0

One of the Most Profitable Oil and Gas

Deep Technical and Operating Companies in the World(1)
Leader in Industry
Experience
Net Profit
(US$ bn)

40
30
Strong Balance Sheet / Prudent Commitment to Corporate 20
Policies / Highly Profitable Governance / Transparency 10
0

______________________________
(1) Fortune Global 500 (2014)
(2) FY2014 production; Source: company disclosures
©Petroliam Nasional Berhad (PETRONAS) 2015 7
Full Integration Across the Entire Value Chain
Integration improves margins, diversifies the revenue base and mitigates cashflow
volatility

LNG Shipping Markets PETRONAS is a Prudent,

Safe and Efficient
Export sector Operator

Regasification Terminal
 40+ years operating
experience in Malaysia
Liquefaction Power sector
Natural Commitment to high
Industrial sector 
Gas HSE standards
Processed Gas /
PGU System
 High reliability rates
Exploration,
Development Residential and
and  Deploying technology
commercial sectors
Production to enhance value

Processing LPG

Crude
Oil Industrial sector –
olefins, fertilizers,
methanol
Petrochemical Plant

Transportation sector –
Refining diesel, gasoline, jet fuel
and lubricants
Petroleum Products

©Petroliam Nasional Berhad (PETRONAS) 2015 8

AGENDA

PETRONAS is a Major Multinational Oil and Gas Company

01 PETRONAS: Structured Approach for Human Resources Development

02 PETRONAS in Sudan

04 The Future

© 2015 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be reproduced, stored

in a retrieval system or transmitted in any form or by any means
(electronic, mechanical, photocopying, recording or otherwise) without
the permission of the copyright owner.

©Petroliam Nasional Berhad (PETRONAS) 2015 9

Overcoming Industry Current Challenges through an
Integrated Approach to Develop Competent Human Capital

Growing Dramatic Organizational Key

increase in
global
demand for price Levers of Performance
energy volatility

Declining
production Geopolitical
& reserves uncertainty
from and
existing volatility Interlinked Staffing
fields
Strategic Frameworks

Uncon Tight oil &

shale gas

Young Professional
Sudanese Development
Monetizati
Ultra-deepw Framework
on of more ater
difficult
resources

©Petroliam Nasional Berhad (PETRONAS) 2015 10

ORGANISATION – Key Levers of Performance
JOB enrichment and Core Function Specialisation in certain departments
to ensure clear focus and accountability to support the key levers

Priorities – Strategically inter-related

Organization
AGREEMENT Production
Ownership &
Government Motivation
Contribution
Profit
Building Performance
Core Creating Services
Governance Leadership Compete Value
ncies
Growth
Partner Jobs
Contribution JOA
Economic
Life Sudanization

Lever 1 : Partners rights Lever 2 : MC to shape Lever 3 : Blending Lever 4 : Creating Values
and position the organisation Partners position with for all
local to all stakeholders

©Petroliam Nasional Berhad (PETRONAS) 2015 11

Sudanisation Philosophy Is Based on Staffing Aspiration
and Interlinked Strategic Frameworks
Input Staffing framework Output

1 Optimal
Optimal 2
Required
Required Mix Malaysian

Jobs in
Jobs in JOC
JOCfor
for staffing options
staffing options
growth
growth For PSO
For PSO
Sudanese Mix

Output Input
Defines staffing options for
Staffing Aspiration each job family YPS dev. f/work
Factors affecting
general principles On the job training
100% mentoring/peer assist
EPSA
requirements 80%
Local labour
laws 60% Formal training
Workforce 40%
capability
20% Secondment/cross-postings
Direct Hires 0%
Matches staffing options to
YPS
Malaysian
Mid Term Long Term
Retention framework capability dev. role

Input Improve
Global Output
Leader

Selec-
Improve Right
Right training
training
Changes (exits)
Changes (exits)
tive
profile by staffing
profile by staffing
in staff
in staff base
base option
option
Suggests retention
4 3
Output efforts by capability Input

©Petroliam Nasional Berhad (PETRONAS) 2015 12

Young Professional Sudanese Development Framework
Fulfills PSO Aspiration of Growing Own Timber

Sudanese staff
recruited by PCO

Sudanese employed to
Seeding Development
fill up Sudan JOCs &
Program
PCO positions

Interview &
Recruitment by Group Sudanese employed to
Talent Sourcing fill other PETRONAS
Filling PETRONAS
positions worldwide
positions
In Malaysia

Sudanese UTP Scholars

UTP Scholarships
released to GOVT or
offered to Sudanese Filling up
other companies Filling up
PETRONAS
Sudan JOC and
Positions
PCO positions
Worldwide

PETRONAS Top
Leadership
©Petroliam Nasional Berhad (PETRONAS) 2015 13
Young Professionals (YPS) Development Framework
Implementation Has Many Challenges and Issues

Seeding Permanent PETRONAS

MPB / Educamp
Recruitment Program Post Position in
LTMP Scholarship
(2 yrs) (5-8 yrs Sudan

• Number • SI
of position • How • Transfer
• Transfer
in Sudan many • PSCO • 2 years back to
to
graduated offer seeding Sudan
permanent
• What program in • To fill
position in
discipline • When • Which KL or PETRONAS
PCSB /
and what JOC/ OPU Sudan position in
PETRONAS
• When discipline for Sudan
required attachment

CONSIDERATIONS
©Petroliam Nasional Berhad (PETRONAS) 2015 14
Overcoming challenges by developing capabilities
PETRONAS capability development programmes
Universiti Teknologi PETRONAS (UTP) PETRONAS Leadership Centre (PLC),
PLC provides a wide range of learning
One of Malaysia's leading science and
consultancy and advisory services; and
technology institutions of higher
innovative solutions for
learning, providing students with
transformational learning experiences
opportunities for the pursuit of
covering all critical junctures of the
knowledge, expertise and
leadership continuum, from leading self
advancement in the fields of
to leading enterprise.
engineering, science and technology.

Institut Teknologi Petroleum PETRONAS PETRONAS Research Sdn Bhd

(INSTEP)
Provides a wide range of learning consultancy
Technical training service provider and advisory services; and innovative
owned by PETRONAS Technical solutions for transformational learning
Training Sdn. Bhd. Established in experiences covering all critical junctures of
1981, primarily set-up to train the leadership continuum, from leading self
skilled technicians and operators in to leading enterprise.
the oil and gas services.

INSTEP Integrated Oil and Gas Training Centre

(IOTC)
INSTEP IOGTC is an integrated facility to create a real
workplace experience in a safe environment. The complex
consists of 2 units of an offshore platform live replica, a
live replica of common process plant and a Drilling
Academy (a collaboration with UMW Oil & Gas) complete
with drilling rig and a drilling simulator.

PETRONAS strives to provide world-class educational and training services through

the various institutions we have established
©Petroliam Nasional Berhad (PETRONAS) 2015 15
AGENDA

PETRONAS is a Major Multinational Oil and Gas Company

01 PETRONAS: Structured Approach for Human Resources Development

02 PETRONAS in Sudan

04 The Future

© 2015 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be reproduced, stored

in a retrieval system or transmitted in any form or by any means
(electronic, mechanical, photocopying, recording or otherwise) without
the permission of the copyright owner.

©Petroliam Nasional Berhad (PETRONAS) 2015 16

We have interest in two Exploration & Production Sharing
Agreements (EPSAs) in Sudan
Block 2A, 2B & 4

30%
40% 25% 5%

GNPOC

Block 3 & 7

40% 41% 5%

PETRODAR 6% 8%

PDOC Downstream 16.4% 2%

16%
60%

2.4% 3.2%

©Petroliam Nasional Berhad (PETRONAS) 2015 Pipelines 17

Border Refinery
Highlights of 20 years of Successful Mutual Cooperation in Sudan

• PETRONAS entered Block 1,2&4 in spite of technical challenges,

paving the way for Sudan to be an oil exporting country.

• Brownfield Process optimization – optimum operating parameter,

eliminate system bottleneck, liquid handlings.

• Integrated Operations practices– Using modelling simulators to

solve system back pressure, optimise well production and uptime,
maximise RF, optimise power consumption

• Introducing Flow assurance – handling of complex issues i.e.

heavy/ waxy crude, foam, condensate

• People development – providing training, coaching and mentoring:

technical training, Scholarships to UTP and vocational training in
KVTC.

©Petroliam Nasional Berhad (PETRONAS) 2015 18

Direction For Growth
Adopting a Holistic approach to balance our business objectives with the
need to contribute to the human capital development in our host country

Optimization of Growth

• Look for Opportunities

for Knowledge transfer • Assessments of
Business
Performance and
• Increase Performance Competitive
Advantage

• Technical
Build Up Competitiveness Interventions
and Capability
• Education &
• Competency & Capability Training

• Stakeholder • Change Initiatives

Engagements

©Petroliam Nasional Berhad (PETRONAS) 2015 19

PETRONAS Training Involvement in Sudan

Nurturing Early Birds

PETRONAS Mobile Library ( 2005 -2011)

©Petroliam Nasional Berhad (PETRONAS) 2015 20

PETRONAS Training Involvement in Sudan

Competency Training: Khartoum Vocational Training Centre

Established in 2005 in cooperation with the Ministry of Education, Khartoum State,

Institute Technology Petroleum Petronas (INSTEP) and GIATMARA, Malaysia
• Training Fields:
1. Automotive Maintenance Technology.
2. Electrical Maintenance Technology
3. Air conditioning & Refrigeration Maintenance
4. Plumbing Technology
5. Building Technology
6. Training of Trainers program
• Handed over to Ministry of Education, Khartoum State in 2012.

©Petroliam Nasional Berhad (PETRONAS) 2015 21

Undergraduate and Postgraduate Scholarship to Study in
Universiti Teknologi PETRONAS (UTP)

170 Undergraduate and Postgraduate Scholarships

©Petroliam Nasional Berhad (PETRONAS) 2015 22

AGENDA

PETRONAS is a Major Multinational Oil and Gas Company

01 PETRONAS: Structured Approach for Human Resources Development

02 PETRONAS in Sudan

04 The Future

© 2015 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be reproduced, stored

in a retrieval system or transmitted in any form or by any means
(electronic, mechanical, photocopying, recording or otherwise) without
the permission of the copyright owner.

©Petroliam Nasional Berhad (PETRONAS) 2015 23

The Future
Our people are our greatest assets in sustaining PETRONAS’
competitive edge

• Competent Resources

• Training and Educational Institutions “Build Own Timbers”

• Maximising value from our global capability development

activities: Training with Partners and Specialist Company

• Global Talent Strategy focusing on pursuing the right talents,

providing them with the right environment and ultimately
developing the right leaders.

©Petroliam Nasional Berhad (PETRONAS) 2015 24

THE NEXT GENERATION LEADERS

©Petroliam Nasional Berhad (PETRONAS) 2015 25

Q&A

©Petroliam Nasional Berhad (PETRONAS) 2015 26

Thank you

©Petroliam Nasional Berhad (PETRONAS) 2015 27