Pokok Sena MP Datuk Mahfuz Omar said the appointment of former Petrofac head Keith Collins as Vestigo chief executive officer was an affront to Malaysia’s industry veterans. “They should reconsider the appointment, because we have so much local talent,” he said at a press conference at the Parliament lobby. “The appointment is an insult to the over 100 people who are general managers and senior general managers in Petronas Carigali.” Two weeks earlier, Petronas Carigali’s parent company, Petroliam Nasional Bhd (Petronas), announced Collins’ appointment based on his 30 years’ experience in management, drilling, well completion and oil field development activities. He is scheduled to start work tomorrow. Vestigo was formed in late June to focus on development and production activities from small, marginal and mature oil fields in Malaysia and abroad. Earlier during question time today, Deputy Minister in the Prime Minister’s Department Datuk Razali Ibrahim said Petronas had to create Vestigo as drilling in marginal fields required specific skillsets and an operational mindset different from large oil fields. Razali described drilling in marginal oil fields as “uncharted territory”. He said there was no expertise available locally, be it companies or human capital. “Marginal fields require high cost and different skills and mindset,” Razali said to a supplementary question from Kepala Batas MP Datuk Seri Reezal Merican Naina Merican. “In Malaysia, there is no other company with such expertise like Vestigo. “I agree that there are plenty of experienced people, but unfortunately we need specific expertise to enter this sector.” PAS Kuala Krai MP Dr Mohd Hatta Ramli rejected Razali’s answer at the press conference. He said that drilling in marginal oil fields was not new. Even those who worked in large oil fields would have had at least some experience with marginal fields. “There is no need to go on as if we can only find expertise outside. It may be new in Malaysia, but marginal fields have been discovered not only in new locations but also in existing oil fields,” he said. Mahfuz added that the creation of Vestigo would stunt growth of the local industry, as it would end up competing with other local companies that have plans to go into marginal fields. “Rather than going in on its own, Petronas Carigali should cooperate with states that have these fields, such as Sabah, Sarawak, Kelantan and Terengganu and develop these small fields. “This would help increase the revenue of these states and develop the expertise... by creating its own subsidiary, they are stunting the growth of the industry,” he said.
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