Kota Kinabalu: Sabahan oil and gas vendors risk losing value in joint ventures (JVs) if they enter partnerships without a clear direction tied to their own capabilities, according to established local industry player, Masnahwi Nawi.
“We do not simply perform a JV beyond our capability or product line. The JV is a platform to give more exposure to the player, to transfer technology and to help the company grow,” the Nawi Oilfield Services Sdn Bhd Chief Executive Officer said at the 13th Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE).
He said JVs should not become arrangements where local Sabah companies just lend their names to larger partners while reaping minimal benefit.
He said the risk of such dependency is real but could be avoided if Sabahan vendors entered partnerships with a focused product line and a genuine intent to learn.
He said the ideal arrangement was one where experienced partners led operations and bring Sabahan vendors alongside them to gain direct exposure.
“Let the expert run the show and bring the local Sabahan behind them to give exposure so they can learn. From there, the partner should transfer the technology and their expertise,” he said.
He said Sabah already has State Government support through various programmes and JV frameworks, as well as guidance available through industry bodies including the Malaysia Oil and Gas Services Council and the SOGCE committee.
He said local vendors needs to be actively tapping into those structures rather than entering the sector blindly.
Additionally, he raised concern over the growing number of companies rushing into oil and gas without assessing whether their capabilities matched the demands of the industry.
He said many were entering simply because they saw revenue potential in the sector, a pattern he described as vendors sprouting up like mushrooms without a clear direction or understanding of the business roles they were taking on.
On the question of whether Sabahan vendors faced a harder path than those from the Peninsula or Sarawak, Masnahwi acknowledged the gap in exposure compared to more established oil and gas regions but said State support and industry guidance were available to help bridge that gap.
He said local vendors who used those resources wisely stood a better chance of competing.
“Oil and gas are not like supplying things to the government or another company. It is high risk and high standard, so players must understand how to deliver and how to choose their products,” he said.
On that note, he called for solidarity among Sabahan industry players, saying the sector’s opportunities are large enough for all participants and that competition among locals is counterproductive.
“The cake is very big, so do not be greedy. Let us work together and unite as Sabahans. From there we can develop as stronger Sabahan players,” he said.
