Contributed by Mr Ian Lu, Mr Tan Reng Fu, SCAO Tubular Products Dept

July 2023
Singapore

We are thrilled to share some exciting news that marks significant milestones in SCAO Tubular Products Dept’s business journey.

After months of dedicated efforts and intensive negotiations, we are proud to announce that the following long-term contracts have been agreed in Brunei and Malaysia through our subsidiary companies.

This achievement is a testament to the collective efforts, dedication, and integrated corporate strength of Team SC, and would not have been possible without management support, unwavering commitment of team members and our relentless pursuit of excellence.

Brunei – 10-Year Contract with Brunei Shell Petroleum (BSP)

SC Tubular Solutions Brunei (SCTSB), a management subsidiary under SCAO, has secured a 10-year contract extension with our long-term customer/partner, Brunei Shell Petroleum (BSP).  SCTSB provides local tubular manufacturing, supply, and inventory management services for BSP, which is part of SC-Shell’s global framework agreement network for Tubular Supply.

This achievement not only solidifies our position as a trusted partner but also opens a multitude of opportunities for SCTSB’s and overall SC Tubular division’s growth and expansion, allowing us to leverage our existing network and expertise to enhance localisation efforts, potentially providing multi-layered, cross-silo value opportunities across Shell’s business footprint in Brunei. All these are anchored by this contract’s revenue generation prospect of over average US$40 million annually.

This renewed long-term partnership with BSP is more than just a business deal. It is a significant milestone in our journey with Shell – 2022 marks the 50th anniversary of SC’s Tubular Steel Supply to Shell and it all began in BSP where the first pipe was delivered to BSP operations back in 1972. It is also a local business development project that aligns with Sumitomo’s philosophy of “Benefit for self and others, private and public interests are one and the same”. SCTSB is proud to contribute to Brunei’s local business development and sustainability initiatives via our ICV (in country value) mandate through this one-stop-shop project.

SCTSB opening ceremony in 2017

Malaysia – 10-Year One-Stop-Shop Contract with PETRONAS AND 19+ PACs

SC Tubular Solutions Malaysia Sdn Bhd (SCTSM), a 100% owned subsidiary of SCAO Tubular Products Dept has been awarded the 10-year One-Stop-Shop (OSS) Contract with PETRONAS and 19+ Petroleum Arrangement Contractors (PACs).

SCTSM provides Tubular Products Supply and Supply Chain Management Services to PETRONAS and 19+ PACs in Malaysia.

Securing this contract is a significant milestone for the Tubular Products Business in Malaysia as it further strengthens our 20+ years partnership with PETRONAS and local presence in Malaysia since 2002. The new contract, which will be effective for 10 years until the end of 2032, aims to generate an approximate annual revenue of US$60-80Mil for the business unit.

In line with PETRONAS’s commitment in creating value to support economic growth, the new contract focuses on cost effective solutions and management, heightened customer centricity and new-value creations for the Oil & Gas Industry.

The new Contract also provides the platform and foundation for new business opportunities with PETRONAS and PACs on an E2E level outside of Tubular Products supply.

Some of the ongoing initiatives include:

• Digital solutions for supply management services and inventory management
• Technical engagements to support CCUS/CCS initiatives to attain carbon neutral goals by 2050
• X-to-Reef, which incorporates Blue Carbon Economy concept to repurpose Tubular Products and other scraps to create artificial reefs for blue carbon capture and aquaculture purpose – “Enriching Lives and the World”.

SCTSM 2023 Hari Raya Open House in KL