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KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is to collaborate with Bank Muamalat Malaysia Bhd (Bank Muamalat) to offer financing to Petronas’ Oil and Gas Service Equipment (OGSE) and Small and Medium Enterprises (SME) vendors under the Vendor Financing Programme (VFP).

Petronas senior vice president of Project Delivery and Technology Samsudin Miskon said the company sought innovative solutions for the mutual benefit of all parties, to drive the overall growth of the Malaysian oil and gas sector.

“We are encouraged by the contributions of financial institutions in this collective and holistic endeavour to support local OGSE vendors.

“We are even more encouraged by the achievements of our vendors, who have not only managed to stay afloat through the difficult times, but more importantly to stay resilient and propel their business growth,” he said in a statement, yesterday.

He also urged Petronas’ main contractors to play a larger role in helping their sub-contractors secure financing facilities under the programme.

At a ceremony here yesterday, vice president of Group Procurement, Project Delivery and Technology Petronas, Liza Mustapha and head of Business Banking Division Bank Muamalat, Nor Hamidah Abu Bakar exchanged the Memorandum of Understanding (MoU).

Witnessing the MoU exchange was Samsudin and Bank Muamalat chief executive officer, Khairul Kamaruddin.

Petronas’ OGSE Vendor Financing Programme was established in May 2018 to assist Malaysian OGSE vendors impacted by the oil price crisis in securing working capital and improving their cash flow to stay afloat.

As of Oct 31, 111 applications at a total amount of RM730.1 million had been approved.

Following the exchange of the MoU, vendors of Petronas will now have the accessibility to opt for financing of up to RM5 million per application from Bank Muamalat.

The financing products offered in this programme are the Revolving Facilities (M-Cash), Letter of Credit and Bank Guarantees.

Source: https://www.theborneopost.com/2019/11/07/petronas-to-collaborate-with-bank-muamalat-on-vfp/