GE Energy seeks SMEs for regional procurement

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/getrade/Article/

Published: July 12, 2012
By KAMARUL YUNUS

US$250m ANNUALLY : US company plans to draw on Malaysian expertise in oil & gas

GE ENERGY, which anticipates robust growth in the oil, gas and energy sector in Southeast Asia, is seeking Malaysian companies, especially the small and medium enterprises (SMEs), to tap its US$250 million (RM798 million) a year worth of regional procurement.

Country executive Pahmi Mokhtar said the company was now actively looking at the Asean region, including Malaysia, to draw on its SME expertise and know-how in the sector, which is becoming increasingly challenging.

"In Asean, we are looking at US$250 million a year for oil and gas procurement, that is the size of the cake. In Malaysia, we are just starting.

"We have been doing quite a bit of procurement in the past to support our contracts in the country, but what we are talking today is a little bit different ... more towards regional procurement and we are looking at Malaysia as one of our suppliers," he said after the opening of a seminar on business opportunities in the oil and gas (O&G) sector here yesterday.

The one-day seminar was co-organised by Malaysia External Trade Development Corp (Matrade) and GE Energy.

On areas and size of procurement that local SMEs can tap into, he said it is still very early to specify.

"We have to see. We're just doing the starting up of looking into the region more closely," Pahmi said, noting that the seminar serves as a platform for GE to identify the potentials and capabilities of the Malaysian companies in the sector.

Its subsidiary, GE Oil and Gas, is a world leader in advanced technology equipment and services for the O&G industry, from drilling and production, liquefied natural gas (LNG), pipelines and storage to industrial power generation, refining and petrochemicals.

The company also provides pipeline integrity solutions that include inspection and data management, designs and manufactures wire-line and drilling measurement solutions for the oil-field services segment.

Having a presence in the Malaysian market since 1970s or earlier, GE was awarded a US$150 million contract by Petroliam Nasional Bhd (Petronas) early last month to supply turbo-compression technology to the state-oil group's LNG complex in Bintulu, Sarawak.

In 2009, GE also entered into a global frame agreement with Petronas on the supply of gas turbine and compressors.

Meanwhile, Matrade chief executive officer Dr Wong Lai Sum said the primary objective of the seminar, dubbed the global sourcing programme, is to open doors of opportunities to Malaysian companies to become long-term partners of GE Energy.

"This (seminar) is not a one-day business or for dollar and cent for today, but a long-term partnership.

"As a renowned multinational company, it is pleasant to know that GE trusts the Malaysian capabilities in supplying quality products and services. Unfortunately, not many Malaysian companies are aware of these opportunities offered by them," she said.

She added that Matrade plans to organise 10 such seminars this year, inviting other major players in various sectors.The next seminar is expected for the electronics and electrical sector.