29th April 2009, Wednesday – BSP held its 2009 Vendor Forum with the theme “Growing Local Business”. The event ushered throngs of local entrepreneurs from various fields to the Empire Hotel where its launching was officiated by the Brunei Minister of Energy at the Prime Minister’s Office, Yang Berhormat Pehin Orang Kaya Seri Dewa Major General ® Dato Seri Pahlawan Awang Hj Mohammad bin Hj Daud, accompanied by Brunei Shell Petroleum Managing Director, Grahaeme Henderson.

Grahaeme Henderson mentioned the expectations on vendors to drive costs downwards, whilst addressing the current global economic situation, in which he also highlighted the year’s challenges.

The Minister of Energy mentioned that 90% of the nation’s current exports depends on the oil and gas, with 50% GDP provided by this product. He expressed that it is the responsibility of the local businesses to exercise restraint, control and be prudent to reduce costs. He further highlighted the need to drive business improvement to receive outstanding achievements.

A briefing session on the expectations of BSP on its current and potential vendors was given after the opening ceremony. The messages that were constantly highlighted through this presentation were the importance of the safety culture within the general oil and gas business itself, with BSP’s newly implemented “12 Life Saving Rules” being highly emphasized; and the effects of the current global recession emphasizing the need to cut costs.

SKSWood, represented by Bob Beavis (SKSWood Director / WG Regional Project Director), Hernando Caceres (Commercial / Delivery Assurance Manager) and Hj Mohd Musa Bin Hj Suhaili (Business Development & External Affairs Manager), attended the affair. SKSWood was chosen as a success case study for the implementation of the LEAN methodology into the business structure. LEAN is a business improvement plan with its primary focus on eliminating the 7 identified waste, which are transportation, inventory motion, waiting, overproduction, overprocessing and defects / rework. With the elimination of these ‘wastes’ the plan can then move onto creating a ‘continuous flow’.

Among the various efforts in this scheme, SKSWood has executed Kaizen workshops (a series of workshops with the theme of continuous improvement), which have resulted in optimised materials receipt process, B$1m surplus materials returned in stock, B$13m unused non-stock materials identified, vessel waiting time on materials reduced by 80%, scrap sign-off signatories reduced by 70% and improved usage of yard space.

SKSWood’s representatives, among other subcontractors, also got involved with the day’s ‘round table’ discussions whereby selected potential vendors had the opportunity for open discussions with BSP representatives. The discussions were significant in highlighting the various obstacles that the local businesses face in getting involved with the local oil and gas industry, whilst exchanging advice on tackling certain issues.