Blue Ocean Strategy in Malaysian O&G?

June 29, 2008

I was introduced to the ‘blue ocean’ strategy on the 25th, when the IEM arranged a visit to PETRONAS’s Prince Court Hospital. The strategy involves you choosing a market where there are no competitors (swimming alone in the ocean blue, get it?).

All of the oil and gas businesses of note I know swim in red oceans, where we fight and cut and tear at each other.

In the oil and gas industry, you can start out with a niche market (ex. high end process consultancy, HAZOP leadership, good engineering when your competitors are rubbish) which you hope you have no competition, but when you want to play with the big boys, you have to go head-to-head. If you are successful, you create a blue ocean for yourself by buying up (or bumping off)  your rivals.

So, you can go blue ocean – red ocean -> blue ocean. If you don’t see that cycle, you’re doing it wrong, at least in Malaysian territorial waters.

3 Comments | business opportunity, engineering, Malaysia, oil and gas | Tagged: , | Permalink
Posted by Wata

Vendor Lock-In

June 28, 2008

You never know what item can come back and haunt you. Here’s an example from an oil and gas client I have worked with. They have custody measurement systems (who doesn’t), and they use supervisory metering computers to manage the flow computers available at particular assets.

Now, all the SMCs run their programs in an environment called Citect. They have had environments and application software developed by the local, Malaysian team, and others developed overseas. You would have thought that the two would play nicely together, wouldn’t you?

Wrong. Wrong. Wrong.

The overseas developer didn’t (wouldn’t) give the source files to the local folks. Hence, any work that needs to be done on the MCS has to be sourced back overseas. You can understand why this foobar gives grief to client, and why they are thinking of replacing these made-in-Westernstan system with homegrown apps.

How about something closer to home. Did you know that the HP Photosmart 3310 all-in-one has region encoded ink cartridges? You know about DVDs, Wiis and warranties, but actual print cartridges? Makes you want to buy region-free printers:

“Boss, ini printer boleh pakai cartridge chiplak?” 

1 Comment | Malaysia, oil and gas | Tagged: , , | Permalink
Posted by Wata

Shorter Work Weeks

June 27, 2008

An associate of mine mentioned that Ranhill WorleyParsons has implemented a 4 1/2 day work week. You work an hour more from Monday – Thursday, and skedaddle Friday afternoon.

IGL Perth did (does?) a similar thing. You work an extra hour for 7 days in a fortnight, and get the 8th day free.

The above are examples of companies putting that extra bit in to nab the scarce experienced engineering resources that are floating out there, and promoting intangible benefits to entice them.

But, give an engineer extra hours in the day, and she’ll try to work overtime. Intangible benefits only go so far, gas for the car isn’t sold for smiles and goodwill. Heck, I’ve seen an engineers’ timesheet where he worked 18 – 22 hours a day. And he was an expat. Please work for someone who will sign off a timesheet with those figures.

1 Comment | Malaysia, oil and gas | Permalink
Posted by Wata

Offshore Living – Food

June 25, 2008

As I go through my exclusive collection of photos, I am reminded that there are not many luxuries out there. One of life’s simple pleasures that your company can splurge on is food. This was taken during Ramadhan offshore, many moons ago.

Offshore buffet

There used to be barter trade between the platform folk and fisherman who were fishing nearby. For a hot meal or three, the fisherfolk would send up some of their choicest fish, to be cooked per request. To get a closer look at their catch, the platform folks would even use binoculars, as they were at 30m elevation looking down on a small 10m boat.

If you want to irritate oil and gas people who stay offshore for weeks on end, serve them bad food, lukewarm food and not enough food.

1 Comment | Malaysia, oil and gas | Tagged: , | Permalink
Posted by Wata

The Kerteh Subang Commute

June 22, 2008

Did you know that if you were Petronas or EMEPMI staff, you can take advantage of a chartered flight between Subang and Kerteh? It shaves off hours from the usual KLIA-Kuantan-Kerteh route. It leaves Kerteh at 7:00, leaves Subang at 8:30. The afternoon flight leaves Kerteh at 4:30, and leaves Subang at 6:00. As a former colleague of mine says, it’s travelling during gentleman hours.

No inflight movie, and no refreshments. The reading material is a bit thin, something about exits. Did I mention that 2 people sit abreast? You do get a personel safety briefing by the flight captain.

A commercial flight used to travel between Kerteh and Subang, Pelangi Air. Rumour has it that it went down due to mismanagement.

 So, a business opportunity. Maybe work with Awana Genting for packages, and promote Pulau Tenggol. Actually, don’t promote Tenggol, I want to keep the diving crowd to the ‘need to know’ basis.

4 Comments | engineering, Malaysia, oil and gas | Tagged: , , , , , , , | Permalink
Posted by Wata

IEM – Future Online Plans

June 21, 2008

I received this email back from the IEM:

“Dear Engr. Razmahwata,

Thank you for your email of April 2 regarding the above and my apologies for the belated reply. IEM will be setting up its own blog site in the near future and any issues that may concern the Institution and the engineering fraternity can then be posted and discussed there. We appreciate your interest and support given to the institution.

Best rgds,

KM Cheang,

Executive Director”

 

2 Comments | engineering, Malaysia | Tagged: , | Permalink
Posted by Wata

Prof DY Peng – Audio of Plenary Presentation, iCon / VMGSim Int Conf KL

June 20, 2008

I have uploaded the audio of the Plenary Presentation give by  Professor DY Peng at the conference held from the 17th to 19th of June, 2008, at the Le Meridian KL, Malaysia.

Part I
Part II

 

I’m still trying to figure out how to deliver the video…

1 Comment | engineering, Malaysia | Tagged: , | Permalink
Posted by Wata

EMEPMI’s Own Web Page

June 18, 2008

I just found that ExxonMobil Exploration and Production Malaysia Inc has its own web page. Go visit them.

1 Comment | Malaysia, oil and gas | Tagged: | Permalink
Posted by Wata

Pre-Owned Equipment Market?

June 17, 2008

If you scan through the TCE, you notice that there is a second hand equipment market in the chemical industry. How come there’s no such market for the Malaysian oil and gas industry? We have had assets that have been transferred wholesale from foreign operators to PETRONAS Carigali Sdn Bhd (PCSB), and not without a lot of grumble as to the shoddy state of them. You don’t hear of dealers flying to platforms, and purchasing equipment by the lot (note: please don’t try to reuse pressure gauges. Wellhead christmas trees should be good, though. And don’t think about reusing a 10-year old DCS).

I believe IPC tried to do that, purchasing off the shelf (read: second hand / already fabricated) equipment to develop acerage off Semenanjung Malaysia, but that was the only attempt I heard.

What could be stopping the market? Maybe:

  • Cheaper to fabricate then to import. Knowing our tax structure, and concerns about Malaysia being a dumping ground (customs: “You want to import WHAT?”). Not to mention loss of local jobs.
  • No ready source of second hand equipment for O&G purposes. Most of the old oil platforms have been transferred to PCSB, though there are some that have been decommissioned (one’s an artificial reef at the Kenyalang dive site off Miri). Mobile Production Units (MOPUs) are designed to be reused, though the key word is ‘designed’. I guess their paper trail is centred around such use.
  • Too difficult to recertify equipment? How do you recert pressure vessels? Do you need the original fabrication drawings, procedures and certificates, or do 100% non destructive testing, and pressure test the dang thing?
  • Insurance companies not willing to cover the costs.
  • Just not cool enough for companies whose revenue dwarfs GDP of countries.

 

 

2 Comments | diving, engineering, Malaysia, oil and gas | Tagged: , | Permalink
Posted by Wata

Opening – New Cafeteria Operator in ExxonMobil

June 15, 2008

ExxonMobil’s looking for new cafeteria management. Those who are interested (criteria includes preparing halal meals) can enquire at Menara ExxonMobil, KLCC

I would suggest that interested parties call the main line (+603 2380 2000), and ask for Facilities Management, or Building Management. Don’t ask for Facilities itself, as you will get Operations Technical Support (or should).

Hah, or you could ask me, and for a certain fee I will provide you with a lucky extension number (which is on the wall of the ME musalla, actually).

Did I say I don’t work for EMEPMI?

2 Comments | business opportunity, Malaysia | Permalink
Posted by Wata

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