KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), along with the Malaysian Oil, Gas and Energy Services Council (MOGSC) and Malaysia OSV Owners' Association (MOSVA), has hosted the Petronas Vendor Financing Programme (VFP) Conversation Day which is aimed at facilitating access to financing for registered local vendors in the oil and gas service equipment (OGSE) ecosystem.
The vendors can obtain financing from nine of the programme's strategic partners, namely Bank Islam Malaysia Bhd, Bank Muamalat Malaysia Bhd, Bank Rakyat, CIMB, Export-Import Bank Malaysia Bhd (EXIM), HSBC Bank Malaysia Bhd, Malayan Banking Bhd, RHB Bank Bhd, and United Overseas Bank (Malaysia) Bhd.
Petronas head of strategic programme and licensing of group procurement Natrah Mohd Tahir said VFP was mooted to assist Malaysian OGSE vendors adversely affected by the oil price crisis back in 2018 in securing working capital and improving their cash flow to sustain their businesses.
"Now compounded by the impact of the prolonged pandemic, it is time that we intensify our efforts to support our vendors, who all play an important role in the oil and gas ecosystem," said Natrah.
Vendors will access financing facilities catering to their specific needs to meet their contractual obligations.
VFP is supported by Syarikat Jaminan Pembiayaan Perniagaan (SJPP), which provides guarantee schemes as an alternative to collateral requirements by the banks.
Natrah added that the collaboration between Petronas, MOGSC and MOSVA is pivotal to ensuring that VFP benefits OGSE vendors.
"The survivability of the OGSE ecosystem lies not only when vendors can sustain during trying times, but also to be able to grow in tandem with the industry and reach their full potential," she added.
She said the programme continued to positively impact the industry with more than 260 applications and RM 1.6 billion worth of funding approved as of July 2022.
