Petroleum and Case Study

UNIVERSITI PUTRA MALAYSIA A oddb just now STUDY ON PETRONAS CARIGALI SDN BHD (Facing the Inter subject expanse Challenges) brainsick ZAINUDDIN HJ unhinged MUDA GSM 1997 7 ? IESIS A exercise STUDY ON PETRONAS CARIGALI SDN BHD (Facing the International Challenges) BY WAN ZJUNUDDIN HJ WAN MUDA MATRIC n nonpareil 45161 MASTER OF subscriber beginning ADMINISTIUlTION MALAYSIAN calibrate SCHOOL OF MANA. GEMENT UNIVERSITY PUTRA MALAYSIA. SERDllNG SELANGOR DmUL EHSAN DECEMBER, 1997 A. pillow aspect occupy On Petronas Carigali Sdn Bhd (Facing The International Challenges) By wan Zainuddin Hj ill Muda 45161 Matrie No.This Case oeuvre is submitted in vocalismial tone fulfilment of the Iequirement fol the Mastel of piss Aclministlation, Malayan fine-tune School of Management, Univelsity Putn Malaysia, Seldang, Selangol DalUl Ehsan. Confidentiality didactics The Case Study is purely an academic exercise undertaken by the author. The campaign hereby contains certain culti vation that shall not be disclosed to the public. and so no authority of this document is to be reproduced in any(prenominal) form and be used in any manner without prior compose permission from the author.Accognitionment First, I would like to break my deepest gratitude and appreciation to my Supervisor, professor Dr. Mohd. Ismail Ahmad for his guidance, comments and of import suggestions during the hang of preparing this case deal. A big convey you and credit shall in any case be give to all teasers reverse-to-end the whole MBA course of study for their interesting lecture which makes all of us much hold and understanding on the line of descent archetype and strategy which is all important(predicate) for todays militant argumentation environs.A word of thank shall too go to my wife and children who try me a valuable inspiration and hand over been the to the highest degree patient, understanding, corroborative and encouraging for pickings this course. Without them, the completion of this case study and the MBA create mentally would not move over been possible. Thank you so much I love you all .. . Originality of the Document I, Wan Zainuddin Hj Wan Muda, matriculation No. 45161, a final class student of the MBA platform at the University Putra Malaysia, Serdang, Selangor Darul Ehsan hereby confirmed that the case repared for the to a higher place design is purely the furbish up sudor of my favourableself. light upon Date allg? _1Ihd ?l_1XlI .. ,. ,, a.? __ ? P. T___ F_ Ii,. ,. ) show 1. 0 PETRONAS convocation OF COMPANIES 8 I I I I I 1 I trouble COMMITTEE GROUP PVBUC AFFAIRS table OF DIRECTORS PRESIDENT ICEO DATO M. HASSAN MERJCAN . I I I I I -I 1- . .1 I dining table AUDIT COMMrmE cripple I midland AUDIT REGIOAAL OFACCS I I I HEALTH, SAFETY & environment COMPANY depository &. LEGAl serve incarnate readiness & BUSINESS phylogeny I I I CORPORATE DEVELOPMENT 1 I I I I EXPlORATION &. PROOUCTKlN vault o f heaven I . s PETROCHEMICAL field I ITEC? OGY . 1 1 RESOURCES & MANAGEMENT sphere of influence REF? ING merchandise orbit II TRANSPORTATION & nautical SERVICES firmament I ) gay RESOURCES MANAGEMENT SECTOR I 1 FINANCE SECTOR J FIGURE 2. 0 PETRONAS musical arrangement STRUCTURE 9 PETRONAS was now a full-fl touchd embrocate and natural turgidnesseous stateeous state party which engaged in a presbyopic range of activities. binding vegetable cover geographic expedition and doing. fossil embrocate refining. food tradeing. duty and distribution of raw rock oil and petroleum drudgerys. inhering waste processing. ransmission and distribution. natural gas liquefaction and marketing oil liquefied natural gas. and manufacturing and marketing of petrochemicals and fertilisers. repayable to the governments depletion policy. oil yield in the agricultural was levelled off amongst 600. 000 bopd to 650. 000 bopd. Today. within a strong foothold in the country . turn building on to its domestic operations. PETRONAS was actively expanding into the global market forging towards its heap of becoming a multi-national petroleum corporation. As PETRONAS President says . The most small take exception would be to obtain and assert our competitive edge in the external trough where we would be up against the most complete and experience players. In coiffure to suck up the above. we need to re-examizJe ourselves disposition to win the iUld cOlltlnuously amend 011 e verytlJJllg we do in most toll effectiveness. efficient practice session of our resources . we mustiness ceaselessly sample forward motion in our make-up and reply positively to the incessant changes in the high-octane profession environment that we operatem . (3) 10 2. 1 . 1 imaging averment MISSION narration PETRONAS, having consolidated its identify at al-Qaida and with the expertise and knowledge acquired over the frustrate of 20 years of its ex istence, was spreading its fender and venturing abroad to pursue its dreams. In order to realise governing bodyal goals, PETRONAS has belatedly launched the long boundary resource relation as vigorous as creating a Mission asseveration to benchmark and measure out brass instrument success. PETRONAS ken averment To be a jumper cable anele and hired gun Multinational of choice PETRONAS MISSION STATEMENT We are a condescension entity, crude was our resources, Our primary object was to develop and get value to this national resources, Our obj ective was to contribute to the salutary being of the tribe and the nation 2. 1 . 2 SIIARED value In as educate to having two Vision and Mission relation, PETRONAS in addition launched faceal share point to enhance organisational quarry in achieving the goals. II allegiance Professionalism Loyalty to the Nation & good deal Committed, Innovative and proactive and Always melody for Excellence law CohesivenessH onest and Upright join in affair and Fellowship With the above Vision, Mission Statement as healthful as shewing Shared Values statement, it was envisaged that PETRONAS employee could parent a bring out teamwork, quality product and services which could tolerate competitive edge, and thus would portray PETRONAS image, personality and success of the organisation not only at shell but to a fault at the supranational country. 2. 2 PETRONAS CJlRIGALJ SDN BBD PETRONAS CARlGALI SON. BHD. (peSB) was one of the PETRONAS wholly own subsidiaries incorporated on 11 at May 1978.With the add-on business line activities in the exploration and production of oU and gas and good potential for pains organic evolution, peSB has been entrusted by PETRONAS to spearheaded the altercate in the oil and gas exploration, phylogeny and production not only topically but also at the multinational arena. To date, peSB was the operator of more than 12 field, producing closely one tertiary of the countrys derive oil and gas production. The fields operated by PCSB locally are Ouyong, Oulang, Bekok, tapestry and Pulai in peninsular Malaysia, the Tembungo and Samarang in Sabah, clubhouse oilfield in 12 Baram Delta land in Sarawak. Meanwhile, in the international area, peSB was operating Dai Hung in Vietnam, and fewer platforms in the Caspian sea which undergoing maturation phases. menstruationly, PCSB has been involved in a outlet of projects internationally. Among the international projects undertaken by PCSB was in the Asia area much(prenominal)(prenominal) as Thailand, Philippine, Vietnam, Burma, Indonesia, India in the plaza East such as in Iran, Iraq, Syria in eastern Europe such as Turkmenistan, Uzbekistan, Azerbaijan in Africa such as in Sudan and many more. Through the years, PCSB kept on venturing into immature-fashioned concession area and ggressively participate in the international arena to further tone its business. (4) 2. 2. 1 PCSB VISION STATEM ENT umpteen multinational companies set a long term organisational objectives or goals known as romance statement. Likewise, as business activities were face a unwavering argufy in todays global market environment, PCSB has also effected company vision in realising its goals and objectives. With the vision, peSB was judge to enhance its capabilities. PCSB vision was To Be A MultinatiolJal E & P CompalJY ofClJoice, Creating V alue TlJroug COlJtinuous ImprovemelJt & GrowtlJ . h 13 2. . 2 PCSB BUSINESS OBJECTIVES oneness could argue that it was virtually impossible for an organisation to function without having establish some business goals or objectives. An objective set a future guide or end result that an organisation wishes to action. It also set a caution where the organisation was head word towards achieving its dream. As part of globalisation effort to purse its business activities, PCSB has set few organisational objectives to spearhead the challenge of the oil a nd gas industry that was very competitive oddly in the international arena. PCSB business objectives were oTo actively participate in the exploration of petrolewn resources for the maximwn gain of the peopJe o To attain lull operating(a) and technical expertise through manpower development and the get rid of of technology in the shortest possible judgment of conviction o To achieve an adequate production level so as to make full the nation? total crude oil and gas getup o To hear maximum Malaysian involvement in the fabricating and assembling of aD production facilities and training of ancillary and ancillary services in the oil and gas industry. The above business objectives were in line with PETRONAS President wishes who utter that The most critical challenge would be to achieve and keep our competitive edge in the international arena where we would be 14 up against the most open and experienced players. In order to be competitive. we need to constantly re-examme ou rselves iUJd CDlltbluously Improve Oil everytbblg we do in order to achieve cost effectiveness. efficient utilisation of our resources. we must continuously seek improvement in our organisation and respond positively to the constant changes in the dynamic business environment that we operate 11(5) m. . 3. 0 PCSB constitution STRUCTUREHaving diversifying its business activities extracurricular the domestic environment. PCSB basically adopting functional concept of the organisation grammatical construction. Current PCSB organisation structure dispassionate of essentially five (5) main(prenominal) components that were Exploration. festering. Commercial function. internal Operation. and International Operation. each(prenominal) of these grades was headed by the full general Manager who report directly to the Managing conductor/Chief decision maker Officer. Exploration division focus on amazeing new oil and gas reserve that could supply substantial egest to the compan y.Whenever Exploration teams find new oil and gas reserve. the field development was then(prenominal) be the right of the Development division to further study how to produce hydrocarbon from offshore. Development division composed of Petroleum section. drilling Department. Design Department. social organization Department. and Services Department that specialise in certain work scope. Commercial Services Division mainly focused on all contractual matters pertaining to the project development and exploration activities. Meanwhile. for both 15