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Interview

Nan Yusri bin Nan Rahimy – Group Managing Director, Deleum – Malaysia

14.05.2015 / Energyboardroom

Nan Yusri bin Nan Rahimy, Group Managing Director of Deleum, shares with EnergyBoardroom more information on how Deleum has evolved from a trading company to an example of Malaysia’s innovative and expanding local capacity, having been involved in the development of 10 in-house specialty chemical solutions in recent years. He also discusses the company’s segmentation of its businesses into three core business segments and the consolidation of the Group under the Deleum name. 

You became MD of Deleum four years ago. Can you please enumerate the main milestones of your tenure thus far?

The first very important milestone I would like to highlight is the formulation of the Group’s mission, vision, and shared values that now stand as the pillars for our future growth.

The next major milestone was the consolidation of the Group under the Deleum name, which we completed in 2012 in conjunction with our 30th anniversary. Prior to listing on the Bursa Malaysia in 2007, the key operating company was known as Delcom Services. However, we decided to list under the name Deleum, which combines Delcom and Oleum (Latin for oil) to better reach the wider public. From 2007 to 2012, our holding company was thus known as Deleum but our key operating company remained Delcom. Because of the emotional value and sentiments associated with the Delcom name, it was a challenge to accept Deleum as a name for the entire group. Nonetheless, we were able to manage this change in 2012, and our united name now gives a clear message that Deleum is one integrated entity.

I would have to define our third milestone – the segmentation of our businesses into three core business segments to ensure focus of each segment while reaping the synergies between the three core businesses at once. Our three segments – Power & Machinery, Oilfield Services and Maintenance, Repair and Overhaul (MRO), have a clear-cut demarcation in terms of product and services to foster more effective growth as we are expanding our capabilities and our range of specialised products and services towards positioning ourselves as an Integrated Solutions Provider.

In addition, the growth of the management team has been very instrumental to the solid results Deleum has been posting and stands as a milestone. Our new young and energetic team has allowed the company to reach record growth and record profits year-on-year for the past four years. As a young team, we are more spirited to look into new ideas and opportunities with calculated risks that bring such results.

Among other milestones, our chemical unit had on 2011 commenced its joint commercialisation effort of SolidClenzTM with PETRONAS and as of to date, the number of production and specialty chemical solutions developed in-house has amounted close to ten solutions. Lastly, I would like to add our 2012 acquisition of Northern Primera Sdn. Bhd. (now known as Deleum Primera Sdn. Bhd.), a technology based distributor which provides integrated corrosion and surface preparation services has further expanded the MRO segment’s scope of services in the maintenance, and repair services supply chain.

Deleum is a market leader in Power & Machinery. How has this business segment developed in the past years?

Power & Machinery has always been a sustainable segment for Deleum. We collaborate with Solar Turbines, a subsidiary of Caterpillar and are the front runner in terms of gas turbine business in Malaysia. We have close to nearly 300 units of gas turbine installations in Malaysia. Far from sitting on our laurels, we are constantly looking for ways to further advance ahead of our competitors and be cost efficient.

Your oilfield services division is one of your fastest growing, while Markets predicts the oilfield services market will be worth $291.8 billion by 2019, signifying a firm annualized growth rate of 11.9% from 2014 to 2019. With this in mind, what are the targets you have set for Deleum both in Malaysia and regionally?

Oilfield Services is definitely one of the main growth drivers at Deleum, with our two Oilfield Services entities – Deleum Oilfield Services and Deleum Chemicals.

I wish to share some milestone on Deleum Chemicals, in which the unit had earlier collaborated with PETRONAS Research Sdn. Bhd. on the development of SolidClenzTM, and subsequently commenced its joint commercialisation effort with PETRONAS Technology Ventures Sdn. Bhd. to commercialise the solution in both domestic and international market. We are proud to share that this solution has proven effective in achieving increased production as high as 70 percent of the oil well original production by dissolving and dispersing solid deposits in wells and pipelines. Thus far, SolidClenzTM been applied to 35-40 wells and has increased production by more than 1 million barrels and the number is growing. Although we have since ceded the IP rights of this technology to PETRONAS, Deleum is proud to have developed in-house capabilities with the collaboration with PETRONAS. DEL-SOL is another specialty chemical solution for which we have developed and retain its IP within Deleum Chemicals and widely used as a tool for production enhancement of matured field.

Within the segment, Asset Integrated Solutions (A.I.S.) unit was established in 2013 to consolidate and integrate the segment’s products and services into an integrated services and one-stop solutions provider. A.I.S. provides technical consultancy based solutions and a full-fledged in-house team to conduct well studies on how to best revive wells, increase production and increase oil recovery. At the same time, our slickline business has been developing since 2003, and we currently operate more than 50 slickline units in Malaysia as compared to 26 units operated in 2008. Concurrently, Deleum is introducing many new technologies to be applied to the oilfield arena. We also collaborate with the major international oilfield services company as they have the tools/technology and we have the conveyance method to apply these downhole tools.

With Deleum group currently expanding your overseas presence, what specific geographies are you targeting and why?

In Southeast Asia, Deleum is looking at opportunities in Indonesia, Thailand, Myanmar, Brunei, as well as Kazakhstan in Central Asia. In chemical business per se, formulation of our specialty chemical is vital as no two wells are the same, and the application for our chemical products are effective to resolve heavy, waxy crude well. Overall, our technology delivers and brings the most value in predominantly in upstream sector markets.

The Malaysia media reported last year that Deleum had identified two to three potential acquisition targets. Can you provide more details on the progress of these plans?

We always keep our radar open, and, at the current moment, we are talking to two to three parties. However, this is still in early stages and we have been talking to many parties over the past years to ensure that any possible acquisition targets share Deleum’s mission, vision and objectives, as we are only considering acquisitions that complement our current core services at this particular moment. In addition to acquisitions, we are looking at both lateral and vertical growth within our three segments to create packaged, integrated services. For the next three years at least, we see the growth in our current three segments and possibly will not be looking to add on new segments at this particular moment.

Deleum obtained its OPITO-Competence Management System Certification certificate (OPITO-CMS) and has opened a training well facility. How has the facility contributed to Malaysia’s oil and gas future?

We help move the nation forward by churning out manpower and, more importantly, competent manpower. The majority of the HR challenges the industry faces today is a result of the 1997-1998 crash that has created a talent gap with the middle tier talent missing.

To address the issue of talent insufficiency and the need for competent technical training, Deleum has set up a training well facility which is built within Deleum Oilfield Services facility at the Asian Supply Base Labuan, especially for oilfield services and slickline services. This is a sunk cost, but we want to contribute to train our both wireline and wellhead maintenance personnel who perform actual jobs such as rigging-up, operating and rigging-down the equipment at the environment which is similar to the actual drilling platform at offshore locations.

Having obtained the OPITO-CMS certification, occupational standards on clear criteria for competency management and a qualification system with clear grading are defined. Also, the adoption of CMS has driven our commitment to ensure workforce’s competency and safety at all times. Previously, competency was often defined by years of experience rather than concrete skills. However, in Malaysia there is simply not enough qualified and experienced professional to meet market need. We thus use our training programmes to move professionals with limited years of experience up the job value chain. Furthermore, we work closely with PETRONAS at this training facility and are also able to stimulate problems at wells before applying solutions offshore.

The oil & gas industry plays a prominent role in the government’s ETP with the stated objective of making Malaysia into an oil & gas service hub. How do you see the role of Malaysian services providers, like Deleum, in the country’s path to become an oil and gas hub by 2020?

Earlier, Malaysia has more than 4,000 companies with PETRONAS licenses but we have to accept the fact that not all of these companies have regional aspirations. Deleum wants to be a regional player within the industry as stated in our vision statement, and to also play our part in marketing Malaysia as a regional hub. We collaborate with many European and US-based companies and we are doing our part in convincing international companies to set up their regional Headquarters to Malaysia. We also work with various Government Agencies and share our thoughts on how to best attract international players to Malaysia.

You have been with Deleum since the beginning of your professional career in 1996. What explains your remarkable loyalty to the company?

I am motivated each morning by the team I work with. I look forward to coming to work and collaborating with them, sharing ideas and discussing strategies. In 1996 when I arrived at Delcom, it was primarily a trading company and we had close to 60 products offerings. I was the third or fourth technical staff, and I am proud to have been part of the evolution and streamlining of our business to create our own products and value. My job as Group Managing Director is now to ensure approximately 1,000 of our current employees all move in the same direction having the same goal. Overall, I feel that the growth of the company certainly being moved by our people, which we have created additional job opportunities to close to 500 families in our expansion of workforce initiative from 450 staff to 1000 staff since just 4 years ago.

 

Click here to read more articles and interviews from Malaysia, and to download the latest free oil and gas report on the country. 

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