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Towards Transforming Asian Supply Base Labuan Into World Class O&G Service Provider - Pt.1

“As CEO, I may be responsible for a decision, but I know my decision will be better if it reflects the best thinking of the right people in our organization. I have probably learned more from people who have worked for me over the years than from my bosses. By nature I am an observer – a listener and a watcher. The idea is to harness from the insights that others may have, but not to impersonate them. As a leader, I have to take other’s viewpoints and perspectives into account and then connect these with my own passions and convictions. Communication is a critical skill for a leader. You must communicate your vision, passion, and desire to win if you expect people to follow you. Your message also has to be consistent. If your message today is “March north,” and tomorrow it’s “March east,” after a while, people will get confused and won’t respond.

As far as I can see, with regards to human capital our employees are committed and dedicated to the company’s vision and mission. They look forward not only to the opportunity for learning and development, but also to handle challenges in their daily work as it represents opportunities to grow with the company, under the able and visionary leadership of a team with excellent leadership skills and one that fosters high performance team work. A good working environment, good benefits, competitive salary and a great company culture are of paramount importance to the employees. This will lead to an innovative, creative and productive work force.

We have transformed our Base from a one stop logistic centre to a fully integrated hub for ultra deep and deepwater exploration activities. Through the last 5 years we have acquired more land areas, upgraded our existing facilities and infrastructure as to meet to the demand and upsurge in the oil and gas activities in this region. We are very focused in providing logistics support to all oil majors and service engineering companies. As a Supply Base in this region, we must ensure that we can provide total logistic services to the oil and gas companies.

ASB is characterized by its excellent safety and environmental records, innovative business practices, application of cutting-edge technology, dynamic company culture and active community involvement.

He shared ASB’s vision, mission, aspiration and future plans.

When ASB was formed on 17th March 1984, we were only recognized as a Supply Base for shallow-water drilling operations. When exploration in deepwater area came along we transformed ourselves from a shallow-water facility to deepwater facility in this region. So far, we are the only Supply Base in this region which has capabilities to handle deepwater activities. Therefore, we have transformed through the last 10 years. We have developed our infrastructures and facilities to meet the demand and the increase in oil and gas activities in this region. We have focused on developments coming to this region and we have certainly made preparation as a Supply Base to meet the ensuing challenges.

From an initial basic “One Stop Center” ASB has evolved to a “Fully Integrated Logistics Hub” tailored to the requirements of the Oil and Gas exploration, development and production activities in this region. The principal activity is the provision of onshore/offshore supply base services for the oil and gas industry. The Base is operational 24 hours a day, 365 days a year and sprawls across more than 345 acres of land area. ASB was set up as a commercial entity to develop and manage efficiently the facilities and its services are orientated towards customer’s requirements.

In the initial days, oil companies active in offshore oil exploration and production managed their own supply depots or operated from supply bases in neighbouring countries, thus keeping participation in the industry by Malaysians to a minimum.

The establishment of an offshore supply base at Labuan was an integral part of the government’s plan to indigenize the industry and keep profits within the country.

Currently ASB’s major clients operating in the base in terms of oil major companies are Shell, Murphy Oil, Petronas Carigali, Hess, PCPP, Exxon Mobil, BHP Billiton and Nippon Oil. The supporting service-providers to the oil major companies who also operate from ASB are Schlumberger, Halliburton, Baker, SCOMI, UMW, FMC Technologies, MISC, and Petronas Mitco. ASB has around 800 employees and more than 80 clients in the Base.

Challenges And Moving Forward

In spite of the initial mounting difficulties due to limitation in resources and daunting circumstances, we managed to transform and develop our Base into a state of the art logistic provider, upgrading all the safety policy and adhere to all government rules and regulations. We spend a lot to improve on our infrastructure.

We have to be focused and there is a benchmark to follow and we have set ASB to be a world class player in this business. It is not that easy meeting the high standards in the industry where the players are multinational corporations. As we moved on, we faced more challenges and since we are an incorporated government-linked organization, we have to operate within the framework that governs the public & private sectors. The government authority gives us full support in our development projects so we are grateful.

With the offshore Supply Base in Labuan, we also have to do our level best to provide what our multinational corporate clients want. We have to ensure that we meet their requirements in order to retain their custom.

The Objectives, Success and Accomplishment

We have a good management team, with good accomplishment records. We have personnel with good experience record over the years. We have the vision and the approach. We have good leaders with clear directions. Now we also have a good, reliable and excellent system in place.

Creation of Asian Supply Base

The creation of offshore Supply Base, managed by Malaysians, was part and parcel of the Malaysian Government’s move towards bigger participation in the petroleum industry.
The main objectives of ASB are to promote the development of Labuan as a deepwater hub to maximize the use of its existing competitive advantages to accelerate foreign direct investment and oil and gas activities. In turn, this will promote a higher rate of economic growth and create employment opportunities to increase income and improve the welfare of the people of Labuan. - cont. Pt. 2