Success Story for Provision of Analogue & Digital 2DHR Site Survey Services with Hurricane Geo Inspection Survey Sdn. Bhd. (HGIS)
Opportunity to consolidate and alter the scope with the ambition to build up local vendor capability and cost effectiveness.
Sarawak Shell Berhad (SSB) and Sabah Shell Petroleum Company Limited (SSPC) are playing an active role in developing the capacity and capability of Sarawakian and Sabahan businesses for the sustainability development of Sarawak and Sabah in Malaysia. SSB and SSPC’s Local Content policy statement has always been “supports the development of local capacity and capabilities in the oil and gas industry, enhancing and sustaining Local Content to greater benefit the economic development of Malaysia” for available opportunities in both technical and non-technical/direct and indirect procurement scope of work/supply.
What was the opportunity?
Based on recent market intelligence, the market has been dominated by foreign suppliers, and it is indicated that there are stiff competition in the local supply for site survey services, in a “lower for longer“ oil and gas industry setting.
Shift of behavior
We have changed the selection of strategy and criteria by applying competitive scoping mindset. To have a fit for purpose Scope of Work and Specifications to promote competition between local and foreign service providers and adopted outcome-based commercial model.
Shake the market
- Created an ecosystem that provides an opportunity for local players to compete in this tender -> this is where you allow the vendor to lease vessels instead of owning one.
- Established players are no longer complacent in their market position knowing that we have change our approach.
- Availability of potential local Sarawak vendors and the attractiveness demands.
Impact to the bottom lines:
- Finish the year strong by successfully completed 3 seabed survey/EIA in 2019 within cost, time and NO injury
- Achieving SSB’s ambition to continuously build local vendor capability and contributing to the Sarawak State’s local agenda.
Business Value Impact
- Enhanced “local Content” as a result of awarding to a Sarawakian owned entity.
Next steps
Transition Plans
- Having a Transition Plan where project manager role assigned, targets, time and resources identified and planned for. We also identify transition/migration strategy e.g. Vessel Tracking System might take longer time (months) of concurrent/overlapping old & new system.
- Identify areas of concerns.
- Remember existing contractors – give Recognition award (e.g. HSE performance, Cost Performance), organise farewell meeting, 360 feedback, keep relationship warm through periodic social/technical events with vendor management team.
- To engage with Category Executive and to replicate the learning with other PACs.
Challenge the norm and standard way of working!
