Wee Yiaw Hin, managing director of Shell Malaysia Exploration & Production (SM-EP), shared some of his views about Malaysia, its role in the future of oil and gas exploration and production, and the role Shell plays in developing this region.

While some emerging markets have struggled to re-establish themselves, others have cemented themselves as hot spots. Asia Pacific is still considered a key emerging market in terms of oil and gas exploration.

Investment decisions within the oil and gas sector have always been made based on a long-term outlook. Today, despite the challenging times facing one of the industries hit hardest by the global economic downturn and a cost structure that is high by historical standards, the major players are in fact taking advantage of the current storm to improve effectiveness and efficiency, increase productivity, and manage costs.

The recent reverberations in the price of oil have also had some profound effects on the employment and movement of people globally, no more so than in the volatile and unpredictable markets of E&P. These trends in employment undoubtedly existed before the fluctuation in oil price sent a shockwave through the industry. They were, however, accelerated beyond what anyone could have predicted, and some of the more mature markets have become vulnerable as they lose talent at a rapid pace.

Managing Shell Malaysia

Wee Yiaw Hin, managing director of Shell Malaysia Exploration & Production (SM-EP), shared some of his views about Malaysia, its role in the future of oil and gas exploration and production, and the role Shell plays in developing this region.

Since joining Sarawak Shell Berhad as an engineer in 1988, Wee has enjoyed an interesting and varied career. He was cross-posted to the UK as Head of Development and Process Engineering in 1994, then seven years later moved to South Africa to take the position of General Manager Gas & Power. In June 2004 he returned to Malaysia as General Manager, Sarawak Asset, Sarawak Shell Berhad before assuming his current position in 2006. Wee holds the honorific “Dato,” an award bestowed by the government of his home state of Sarawak for service to the community and excellence in his field.

Today, Shell is a global group of energy and petrochemical companies with approximately 102,000 employees in more than 100 countries and territories. SM-EP is considered the pioneer of Malaysia’s exploration and production sector. Since setting up operations 100 years ago, SM-EP now operates as production-sharing contractor to Petronas and continues to produce and deliver petroleum to meet the growing demand for energy.

According to Wee, the Asia Pacific region is strategically important to Shell in terms of hydrocarbon resources and will be a critical focal point moving forward.

Shell intends to prospect for further growth, develop its business presence, and forge strong partnerships with key players around the region. With this goal in mind, Shell has made Malaysia the technical hub from which the company manages Asia-Pacific operations.

When asked to expand on Shell’s strategy for the region, Wee emphasized the company’s role in searching for and developing new sources of energy supply in Asia and around the world and described a number of key initiatives and opportunities.

“Business-wise, our priority is to develop, extract, and deliver energy safely, profitably, and in a socially and environmentally responsible way,” Wee said. “We work to secure a responsible energy future through sustainable development. A key comparative differentiator for us is technology, both in terms of research and implementation, which Shell brings into its operations.

“We have a number of exciting exploration and production projects in this region including Malaysia, Brunei, Australia, New Zealand, Philippines, Singapore, and China. In Malaysia, gas remains the major part of our EP portfolio, with oil set to grow through the development of major deepwater discoveries in offshore Sabah.

We will continue to find, develop, and deliver oil and gas to increase recovery from and extend the lives of existing fields. The deepwater project in Sabah is a huge change in deepwater technology in Malaysia.”

Shell is investing in technologies that will advance operation excellence. For example, Shell continues to be a front-runner in the implementation of “smart fields,” which allow equipment offshore to be operated remotely. Besides improving reliability, “smart” technology ultimately will result in increased reserves and production from the company’s developments. Shell expertise is being brought in to grow and evolve deepwater oil and gas fields in pursuit of a Malaysian deepwater center of excellence. This major initiative in deepwater technology will have a positive impact on creating jobs for talent from all over the world as well as in creating opportunities for local (national) talent in terms of building more local skills and capabilities.

Attracting valuable assets

Wee explained how “as a successful multinational, Shell is able to provide international exposure, good remuneration packages, and career progression for talented and outstanding employees. Shell provides an environment where one can apply one’s capability and make a difference in delivery or growth for the company, industry, or for oneself.”

According to Wee, Shell provides a conducive and rewarding working environment including long-term career development. Consciously hiring people from
different backgrounds, Shell values diversity and inclusiveness and rewards people who have the ambition, creativity, and innovation to inject fresh thinking to
bring about change.

Wee said that today at Shell there are many opportunities for bright and ambitious employees to develop and grow within the organization, including overseas assignments if they can capitalize on the opportunities given and prove their capabilities.

“National and international oil companies have a shared interest acknowledging the need to develop more people with strong professional and technical capabilities.

And to stimulate world-class individuals, local companies need to employ more local people that will ultimately participate in internationally competitive supply chains.”

One of Shell’s strengths, he said, is that it exposes employees to many environments. “A major element in developing people is providing work experience in different cultures and other operational and technical environments.”

Companies with global operations can provide this kind of experience. As an example, Shell has today more than 400 professionals from Malaysia, Nigeria, and Oman on assignment in other countries, while Shell companies in Malaysia currently employ 6,500 Malaysians — making up 90% of the total workforce.

Wee expressed his own ambitions and professional goals in terms of a desire to see a further development of homegrown industry experts among Sarawakian and Malaysian talent. He aims to make a difference for Shell in Malaysia and in the oil and gas industry as a whole. One step toward that goal, Wee said, is to secure Shell’s long-term presence in the development and growth of the oil and gas sector in terms of research and production as well as in the development of other capabilities in the industry such as design, fabrication, and other specialist services.

Planning for tomorrow

“We have a model to grow, nurture, and develop our own people,” he explained. “In the past few years, we found it a challenge due to a slowdown in recruitment during the slump in the 1990s followed by a rapid increase in oil price that resulted in a tight manpower resource situation. Today we have a comprehensive HR strategy in place to manage the attraction, recruitment, and development of local talent. Generally we see the availability of a solid education system to produce a pool of local talent. Overseas trained professionals bring in added value in terms of technical skill and cultural exposure. The mobility of people within the region means that skilled workforces from neighboring countries are also willing to relocate.”

Within the organization, Shell has local, regional, and global competency and leadership development programs for local talent at a graduate (young professional), mature, and senior levels. The global nature of these programs enables the diversity and transfer of knowledge and competence across the company. Shell also has implemented a healthy cross postings/overseas assignment program that helps in this effort.

“Our scholarship program also provides opportunities for locals to acquire technical and professional skills both locally and overseas, especially in the field of engineering. We are currently working with a number of local universities on technical collaboration, for example with the South East Asia Carbonate Centre of Excellence in Universiti Teknologi Petronas and our Shell Campus Ambassador Program with a number of universities in Malaysia, including the Curtin University Malaysia campus right at the doorstep of the Shell Malaysia E&P office in Miri. We will also continue to look for partnerships with industry and government bodies to further develop local competence.”

For Wee, working with a global company like Shell has meant an incredible career opportunity, and he is enthusiastic about helping new recruits to the company find their way along similar paths. He is keen to promote Shell talent who are willing to work hard and prove their capabilities.

While the general economic environment is putting pressure on suppliers and customers that could potentially impact the major players in the oil and gas sector, the investment in human capital and in the development of their most important resource is one that is clearly being taken very seriously.

Hays Oil & Gas is a business unit of specialist recruitment company Hays. Operating around the globe and interacting with key organizations within the industry gives the company a bird’s eye view of current trends. Over the next several months, Hays Oil & Gas will interview leaders within the industry, people that influence, shape, and command the future of oil and gas. Each article will present an important player within the industry, the company’s strategy moving forward, its current projects, and the influence these activities are having on employment.

Author Matt Underhill completed a Bachelor of Engineering degree with honors at Bath University. He joined Hays in June 1993 and in 2008 was appointed managing director of the Oil & Gas business globally.