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UNIVERSITI PUTRA MALAYSIA A CASE STUDY ON PETRONAS CARIGALI SDN BHD (Facing the International Challenges) WAN ZAINUDDIN HJ WAN REMAJA GSM 97 7? , IESIS AN INSTANCE STUDY ON PETRONAS CARIGALI SDN BHD (Facing the International Challenges) BY WAN ZJUNUDDIN HJ WAN MUDA MATRIC NO .: 45161 LEARN OF BUSINESS ADMINISTIUlTION MALAYSIAN GRADUATE COLLEGE OF DIMANA. GEMENT COLLEGE OR UNIVERSITY PUTRA MALAYSIA.
SERDllNG SELANGOR DmUL EHSAN DECEMBER, 1997 A. Case Study On Petronas Carigali Sdn Bhd (Facing The Intercontinental Challenges) By Wan Zainuddin Hj: Wan Muda 45161 Matrie Number
This Case Analyze is posted in part fulfilment with the I’equirement fol’ the Mastel’ of Business Aclministl’ation, Malaysian Graduate University of Supervision, Univel’sity Putn Malaysia, Sel’dang, Selangol’ Dal’Ul Ehsan. Confidentiality Statement The situation Study is purely an academic physical exercise undertaken by the author. The case herewith includes certain information that shall not be revealed to the open public. Thus simply no part of this document shall be reproduced in different form and be used in virtually any manner devoid of prior created permission from your author.
Acknowledgement First, I would really prefer to extend my own deepest honor and appreciation to my own Supervisor, Teacher Dr . Mohd. Ismail Ahmad for his guidance, remarks and important suggestions during the course of preparing this case study. A big thank you and credit shall also be directed at all academics throughout the whole MBA plan for their interesting lecture that makes all of us more clear and understanding for the business idea and approach which is very important to today’s competitive business environment.
A word of thank shall also go to my wife and children who provide me a valuable creativity and have been the most patient, understanding, supportive and encouraging for taking this program. Without them, the completion of the case study plus the MBA system would not have already been possible. Thank you , I really like you almost all ,… Appearance of the Record I, Wan Zainuddin Hj Wan Cambio, Matric Number: 45161, one final year pupil of the MASTER OF BUSINESS ADMINISTATION programme at the University Putra Malaysia, Serdang, Selangor Darul Ehsan hereby confirmed the case repared for the above mentioned programme is purely the only effort of my goodself. Name: Day: , allg? _1Ihd? l_1Xl”I ,.., , ,.,? a.? __? G. T___ F_ Ii,.,. ) FIGURE 1 ) 0 PETRONAS GROUP OF COMPANIES , eight , We I We I I actually 1 My spouse and i MANAGEMENT COMMITTEE GROUP PVBUC AFFAIRS PANEL OF DIRECTORS PRESIDENT ICEO DATO’ Meters. HASSAN MERJCAN.: I I I My spouse and i I -I 1-.. you I TABLE AUDIT COMMrmE lAMe I actually INTERNAL EXAMINE REGIOAAL OFACCS I I I WELLNESS, SAFETY , ENVIRONMENT COMPANY SECRETARY ,. LEGAl, PROVIDERS CORPORATE PlANNING , BUSINESS DEVElOPMENT I I We CORPORATE EXPANSION 1 My spouse and i I I actually I Search ,. PROOUCTKlN SECTOR I actually. s PETROCHEMICAL SECTOR I actually ITEC? OGY. 1 you RESOURCES , MANAGEMENT SECTOR REF? E , MARKETING SECTOR II TRANSPORTATION , MARINE SERVICES SECTOR I ) HRM SECTOR My spouse and i 1 FINANCE SECTOR M FIGURE 2 . 0 PETRONAS ORGANISATION FRAMEWORK , on the lookout for , PETRONAS was at this point a full-on oil and gas firm which engaged in a wide range of actions. covering petroleum exploration and production. essential oil refining. marketing. trading and distribution of crude oil and petroleum products. natural gas finalizing. ransmission and distribution. gas liquefaction and marketing essential oil liquefied natural gas. and developing and promoting of petrochemicals and fertilisers. Due to the government’s depletion policy. oil development in the country was levelled off between 600. 000 bopd to 650. 000 bopd. Today. in a strong footing in the country. when building to its household operations. PETRONAS was actively expanding in the global marketplace forging to its vision of becoming a multi-national petroleum corporation. While PETRONAS Chief executive says ,. The most critical challenge should be to achieve and keep our competitive edge in the international industry where we would be up against the most established and encounter players. To be able to realise these. we need to re-examizJe ourselves order to achieve the iUld cOlltlnuously improve 011 everytlJJllg we do generally in most cost effectiveness. useful utilisation of our resources ¢,. we must constantly seek improvement in our business and react positively towards the constant changes in the dynamic organization environment that we operatem , , “. (3) 10 , 2 . 1 ) 1 VISION STATEMENT” QUEST STATEMENT PETRONAS, having consolidated its position at home and with the expertise and expertise acquired over the span of 20 years of its existence, was growing its wing and going abroad to pursue their “dreams”. In order to realise efficiency goals, PETRONAS has recently released the long term Perspective Statement and creating a Quest Statement to benchmark and evaluate organisation success. PETRONAS VISION DECLARATION ” As a Leading Gas and oil Multinational of Choice ” PETRONAS MISSION DECLARATION We are a small business entity, Petroleum was the resources, Our primary aim was to develop and add value to this countrywide resources, Our obj ective was to help the well being from the people plus the nation” 2 . 1 . a couple of SIIARED VALUES In addition to having both Perspective and Objective Statement, PETRONAS also released organisational “Shared Values” to boost organisational goal in achieving the goals. , II , Loyalty Professionalism , Commitment to the Nation , Company Committed, Progressive and Proactive and Always Going after Excellence Sincerity Cohesiveness
Genuine and Upright United in Purpose and Fellowship With the above Eye-sight, Mission Statement as well as creating “Shared Values” statement, it absolutely was envisaged that PETRONAS worker could promote a better teamwork, quality services which could give competitive border, and hence would portray PETRONAS image, popularity and achievement of the business not only in the home but likewise at the international arena. installment payments on your 2 PETRONAS CJlRIGALJ SDN BBD PETRONAS CARlGALI SON. BHD. (peSB) was one of the PETRONAS totally owned subsidiaries incorporated upon 11 by May 1978.
With the enhance business actions in the query and creation of oU and gas and great potential for market development, peSB has been trusted by PETRONAS to spearheaded the challenge inside the oil and gas pursuit, development and production not only locally yet also on the international arena. To date, peSB was the operator of more than 12 fields, making about 1 / 3rd of the country’s total oil and gas production. The fields operated by PCSB locally are Ouyong, Oulang, Bekok, Tapis and Pulai in Peninsular Malaysia, the Tembungo and Samarang in Sabah, eight oilfield in , doze
Baram Delta location in Sarawak. Meanwhile, inside the international area, peSB was operating Dai Hung in Vietnam, and few platforms in the Caspian sea which usually undergoing development phases. Presently, PCSB continues to be involved in a number of projects internationally. Among the foreign projects taken on by PCSB was in the Asia location such as Thailand, Philippine, Vietnam, Burma, Dalam negri, India, at the center East including in Iran, Iraq, Syria, in East Europe such as Turkmenistan, Uzbekistan, Azerbaijan, in Africa such as in Sudan and many more. Over time, PCSB maintained venturing in new concession area and ggressively be involved in the worldwide arena to help strengthen its business. (4) 2 . installment payments on your 1 PCSB VISION STATEMENT Many multinational companies established a long term efficiency objectives or goals generally known as vision affirmation. Likewise, since business actions were faCing a stiff challenge in the modern global marketplace environment, PCSB has also proven company eyesight in realising its objectives. With the eyesight, peSB was expected to boost its features. PCSB eye-sight was inches To Be A MultinatiolJal E , P CompalJY ofClJoice, Creating V alue TlJroug COlJtinuous ImprovemelJt , GrowtlJ inch. h , 13 , 2 .. a couple of PCSB ORGANIZATION OBJECTIVES You possibly can argue that it absolutely was virtually impossible for an organisation to operate without having set up some organization goals or objectives. An objective set an upcoming target or end result that the organisation wishes to achieve. In addition, it set a direction where organisation was heading to achieving their dream. As part of globalisation efforts to purse its organization activities, PCSB has established few efficiency objectives to spearhead the process of the coal and oil industry that was very competitive particularly in the international arena. PCSB business goals were, um
To positively participate in the exploration of petrolewn resources for the maximwn benefit of the peopJe o To get lull detailed and specialized expertise through manpower advancement and the copy of technology in the shortest possible time um To achieve an adequate production level so as to meet the nation? total crude oil and gas end result o To make certain maximum Malaysian involvement in the fabricating and assembling of aD creation facilities and provision of ancillary and supportive solutions in the gas and oil industry. These business targets were in accordance with PETRONAS Chief executive wishes who have said that”
The most critical challenge would be to obtain and keep the competitive border in the foreign arena exactly where we would be , 13 , facing the most established and experienced players. To be competitive. we must constantly re-examme ourselves iUJd CDlltbluously Boost Oil everytbblg we carry out in order to attain cost effectiveness. efficient utilisation of the resources, ,. we must constantly seek improvement in our business and respond positively towards the constant changes in the dynamic organization environment we operate 11(5) m,.. ¢ 3. 0 PCSB BUSINESS STRUCTURE
Having diversifying their business activities outside the home-based environment. PCSB basically using functional notion of the enterprise structure. Current PCSB company structure consisting of essentially five (5) key divisions which were Exploration. Development. Commercial Solutions. Domestic Operation. and Foreign Operation. Each of these divisions was headed by General Director who reported directly to the Managing Director/Chief Executive Expert. Exploration department focus on locating new gas and oil reserve that may provide substantial return to the corporation.
Whenever Pursuit teams locate new coal and oil reserve. the field advancement was in that case be the obligation of the Creation division to increase study how you can produce hydrocarbon from offshore. Development split composed of Petroleum Department. Going Department. Style Department. Building Department. and Services Department that specialise in certain operate scope. Business Services Department mainly focused on all contractual matters pertaining to the job development and exploration actions. Meanwhile. for both , 15
