As CEO of SEAMOG Group, a 100% Malaysian, very much a home-grown company – I think it’s an achievement for a local player to be able to offer the range of services we have.
A deeper look into OIL and GAS markets with SEAMOG CEO Sofiyan Yahyan - NRGTalk
You have held and currently hold many important roles in oil & gas organisations, being a founding member and former president of MOGSC, current VP of MOGEC, and CEO of SEAMOG Group Sdn Bhd, to name a few. Over the years, what has been your greatest achievement(s)?
From the point of view of various associations such as MOGSC and MOGEC, I think my greatest achievement through these organisations is that I have contributed towards the creation of a platform for industry and stakeholders to discuss and collaborate in a sustainable way on issues related to the industry. In the past, it was very much driven in one direction but since the organisations were formed, there is a platform where all relevant parties can engage collaboratively. To me this is a significant development for the local industry, to be able to have their voices heard, and play a role in shaping the future of the industry. Furthermore, through these organizations, we have been able to create a sort of community for the industry. A community where stakeholders, government and the industry players themselves, can gather through various working platforms, meetings, forums, conferences, and even social events such as dinners and sport events. We’re not just all work, we also play together.
As CEO of SEAMOG Group, a 100% Malaysian, very much a home-grown company – I think it’s an achievement for a local player to be able to offer the range of services we have. We have done this based on our determination and commitment to offer our experience, technical capabilities and resources, which we can also export. We are also happy that we have been able to contribute to the nation as our presence means another local player has emerged from the industry.
Are there challenges you faced that became a crucial learning point for you? How did you overcome them?
There are challenges but there was no one specific challenge that was so outstanding. I always keep an open mind. The key thing is, as long as you’re determined and resourceful, and apply yourself with initiative, every challenge is surmountable. That’s the only way you can progress.
Did you always know what you wanted to do in your career? What did you do to prepare yourself before starting your first job? I understand that your first job was in Petronas as an engineer.
I have always been a determined person, so I always knew what I wanted to be. There wasn’t a time when I didn’t know what I wanted. If you know what you want from the beginning, then the issue isn’t so much about Where to start. If that is an issue for you, then you’ll have a slower start, because you need to get over that question first. But if you believe in yourself, and know what you want to achieve, then these are only minor issues because you are already on your way to going for your goals and working towards achieving them.
What do you think about the current workforce coming into industry? What skills do you think are most relevant or most in demand today?
The range of skills needed have always been the same, the oil and gas industry still requires the same range of capabilities from welders, riggers, technicians, engineers to specialist experts. The skill disciplines required to run and operate the oil and gas industry are the same. The only thing is because of the downturn, the industry is more focused on downstream, so perhaps we need more people for these downstream activities. But then again, when we talk about the capabilities needed for offshore and onshore – if you’re an expert in pumps offshore, you can also use this expertise in the petrochemical plants onshore. The same goes if you’re a welder, you can work offshore and you can also work onshore.
The other issue is growing new talents and expand the talent pool. For example, now there is a lot of focus in Sabah and Sarawak areas, as well as in Johor for Pengerang project. There is a huge opportunity for growing local talents to serve the industry there. And when we want to go overseas, we also require more talents to follow the businesses and perform projects won overseas.
What do you think about this statement, “It’s not what you know, it’s who you know.” Do you agree with that? Has your professional network been helpful in your career progression?
I think for oil and gas industry, that’s not accurate. In general, oil and gas requires a higher standard of specifications, behaviour and discipline. So, no matter who you know, if you cannot perform at that higher level of standards and expectations, then you will eventually fail as a business. The ‘who you know’ is not sustainable in the oil and gas industry and is very short term, if that is your planned route to success. What is more important in this industry is what do you know, what are you capable of and what is your deliverable?
Recent news have reported that the market condition for the oil & gas industry is slowly recovering. At the moment, the oil prices seem to hover between $50 - $60 per barrel. Do you think the price will go any higher?
I think in the short term or in the near future, it’s not going to go above $60. I do believe $50 - $60 is what the range will be.
What do you think is the future for oil & gas, especially with the emergence of Renewable energy?
Renewable energy has been around for a while. The way I see it, it is an alternative. We still have coal for our power stations, and also hydroelectric power, so to me it is about co-existing alternatives. The world needs to look at the most efficient energy source and energy usage. I believe that renewable energy will co-exist with oil and gas, and that oil and gas will still be around for sometime because it has its niche where it is actually the most cost efficient use and application of energy. Of course if a time comes when renewable energy is much more efficient than anything else, then we should all move towards that – that’s a different scenario. For the moment, I believe that like with everything we have in this world today, we have alternatives. And having alternatives is always a good thing for the world.
Do you foresee further consolidation in the supply side happening in the Malaysian oil industry in the near future?
In the short term, the consolidation will happen because of the current situation. If we’re talking about the Malaysian scenario then of course it is dependent on how big is the Malaysian market. Now that it’s shrunk in certain areas, they will have to consolidate, otherwise they cannot survive. This will definitely have to happen in the near future and it is going to shape the industry. After that, we can’t say what will happen next. The crystal ball is very hard to see with clarity at the moment.
What will be the critical success factors or qualities needed of entrepreneurs in the local oil and gas sector to sustain and even strive in the current competitive climate?
Commitment to the business is important. A real entrepreneur who wants to go into a certain industry sector has to be really committed. By having this commitment and determination, you will find the solutions to be successful. It’s not so much about competitiveness – this is not the first time the industry climate has become very competitive. In fact, this is probably the third time in the span of 10-20 years that we are seeing this sort of business environment. During this time, businesses must persevere. When the going gets tough, the tough gets going. And it’s not just oil and gas, other industries go through downturns as well. So, if an entrepreneur wants to go into the local oil and gas industry, they must have that commitment and determination to see through their business plan and their services or products offerings. If you do not have that determination, I do not think you will succeed. Again, this applies to any business in any industry sector.
Besides depending on PETRONAS for contracts, do you see more local players preparing to venture overseas for more work (eg. what SapuraEnergy has done to-date)? As Malaysia has a low-cost base and experienced workforce.
The industry does not depend solely on PETRONAS for contracts. Yes, Malaysia does have relatively low-cost base, and we also have an experienced workforce. I think it’s very important to encourage Malaysians to work overseas. For regions such as the Middle East, despite their already diverse workforce, they welcome Malaysians for our experience, capability and professionalism. Perhaps because of our focus here in Malaysia has been maximising Malaysian content, Malaysians tend to focus on Malaysian work rather than go overseas. In this downturn however, more Malaysians have found work overseas. We spoke about consolidation earlier, and with more businesses offering wider range of services and capabilities, Malaysian players are becoming more attractive and relevant overseas.
Do you have a motto or philosophy that you follow in life?
Set your goals and be determined. Determination is the key ingredient in what I do. Never give up and be determined to see things through.
And finally, hat do you do to unwind after a stressful day at work?
I love getting into nature and photography. I guess they are activities that are completely opposite from what I do in my day-to-day business, hence the opportunity to unwind.
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