History and

Background

Vision &

Mission

The Management

Team

Our

Customers

Corporate Social

Responsibilities

Doing Business with

Integrity

Committed to Sustainable Development

The Social Performance in Malaysia National Oil is incorporated in our Policy and formed as part of our Social Performance Vision which is in line with the global requirements. The implementation of Malaysia National Oil’s Social Performance is totally integrated into our core business through the existing Business Planning Process. All progresses made in the Social Performance plan are monitored in the business plan of actions.

As part of our communication to staff and stakeholders, awareness sessions through engagements and roadshows are held annually. This aims to enhance awareness among staff and stakeholders especially the community. The campaign focused on Malaysia National Oil Social Performance framework, which increased staff understanding of the relationship between Malaysia National Oil and the immediate community and its operational impact to the society at large.

The Malaysia National Oil Social Performance Plan aimed at strengthening the company’s commitment to all three pillars that fall under the Structure of Sustainable Development namely Social, Economic and Environment.

Malaysia National Oil’s commitment and main strategic objectives to Social Performance are:

  • To manage our operational impact and contribution to the society at large (Social).
  • To maximise / optimise opportunities associated with our operations (Economic).
  • To maximise / optimise impacts associated with our operations (Environment)

Social Performance (SP) is about how we manage the impacts of our business on the communities and societies in which we operate. In 2006, A “Social Performance Action Plan” was developed and implemented.  It aims to improve Malaysia National Oil’s approach from being at the philanthropy stage i.e. by giving donations and grants that has no relation to the business objectives to what is known as ‘Strategic Social Investment’ i.e. activities linked to operational impacts and concerned with enhancing project related opportunities to local communities and other stakeholders. The handing over of the Recreational Club to the community is a testimony to the company’s  “Strategic Social Investment for its immediate neighbours. The Club functions as a full-fledged recreational facility for residents in particular. It has become a popular venue for recreational, sports, educational and religious events.

Over the last 30 years, the Community has grown from fishing communities into residential areas with the availability of mosques, schools and other essential facilities. Most of Malaysia National Oil staff live in Selangor, and Malaysia National Oil supports the educational, religious and social activities of this community through the Malaysia National Oil Community Committee, which is represented by the school principals, other community leaders and staff of Malaysia National Oil.

In order to sustain good relationship, a quarterly engagement is held.  The engagement session is used as a way to identify activity(s)and project(s) that are beneficial to the community.

Apart from the club, Malaysia National Oil also plays a major role (aside from being a major sponsor) in the formation of the Malaysia-Japan Friendship Association (MJFA) the Malaysia Energy Association (MEnA)  and Malaysia Korea Association of Friendship (MKAF). In addition, since 2005 Malaysia OIL & GAS formed a partnership with the Universiti Teknologi Malaysia (UTB) for the Creative Innovative Product and Technological Advancement (CIPTA) Award which is held biennially.

PARTNERSHIPS

Malaysia National Oil’s success is underpinned by its strong links with stakeholders. Beyond business relationships, friendship and co-operation is fostered through involvement in strategic partnerships and associations.

CIPTA Award (Creative, Innovative Product and Technological Advancements)
Malaysia National Oil continues to play a visible role as a good corporate citizen by supporting and partnering with the Universiti Teknologi Malaysia (UTM) in the biennial CIPTA Award, the competition for Creative, Innovative Product and Technological Advancements.

Malaysia National Oil has been recognised as one of the pioneers in the OIL & GAS business when it became the first established OIL & GAS production facility in the Eastern Pacific in 1975.  Since then it became the first OIL & GAS Plant in the region to undergo a major rejuvenation in 1990’s.  This rejuvenation enabled Malaysia National Oil to replace obsolescent instrumentation systems with state of the art technology and upgraded the safety systems and standard in the liquefaction, storage and loading facilities.

The MCHE Replacement in four out of five OIL & GAS Trains in 2004 and 2005 is a first major achievement in the suite of Asset Reference Plan Projects. Its successful completion ahead of schedule without production leaks and Health Safety and Environmental losses is considered a World Class achievement.

On 6 December 2005 the second major activity under Malaysia National Oil’s Asset Reference Plan – the power plant rejuvenation project kicked off with a blessing ceremony and first micro piling work at the plant.

The project is to build a new combined-cycle Power Plant to replace generation in the existing Power Plant, which is more than 30 years old and approaching the end of its design life. The power rejuvenation project will increase the present power generation capacity to about 41 MW and will be able to cater for existing Malaysia National Oil requirements and increased demand resulting from other upgrading projects at Malaysia National Oil. Phase 1 of the project has been completed at the end of 2007.

In Q4 2005 the Cooling Water System Rejuvenation (CWSR) project started. The scope of this project is the construction of the 5 New Cooling tower Cells, rejuvenation of the existing 35 cooling towers including the replacement of 13 cooling water pumps and 6 slipstream filter blowers along with the associated piping and instrument works. In addition to this, the scope also includes the construction of the Switch House #15 to cater the power requirements of the New Cooling Tower cells. The rejuvenation of this 35 old cells has been completed in June 2008, meanwhile the completion and start-up of the new cells portion of the CWSR project has been completed in August 2008.

The above projects together with several smaller projects under the Asset Reference Plan form part of the company’s extension plan to extend the life of its plant for another 30 years and a step toward ensuring long term reliable supply of OIL & GAS to its Buyers, well beyond the existing contract expiry.

Our approach is to comply with all environmental regulations, to improve our performance continually in line with best practice, and to prepare to respond to future challenges and opportunities. We use external standards and guidelines to inform our approach.

Our environmental standards include a focus on managing our emissions, minimising our use of fresh water and conserving biodiversity. We operate our plant with attention to reducing our energy use, flaring less gas and preventing spills and leaks.

Malaysia National Oil’s Commitment and Policy on HSSE & SP emphasises our commitment to Protect the Environment.

Our Standards

Our environmental standards are detailed in our health, safety, security, environment and social performance (HSSE & SP) Control Framework. We comply with local environmental regulations and our own standards. Our Environmental Management System is ISO14001 certified. Using ISO 14001 provides assurance that our environmental impacts are being measured and improved.

Frequently Asked Questions (FAQs)

  1. There are a number of flares found at Malaysia National Oil plant. What is the purpose of this flaring?
    From a distance, the Malaysia National Oil main flare can be easily identified as the highest flare in area. It consists of six pipelines and the main purpose is for operational emergency and safety. Independent air quality modelling and sampling are regularly conducted to assure compliance against World Health Organisation (WHO) standards.
  2. In terms of noise levels from Malaysia National Oil plant, what initiatives are taken to monitor the noise levels in the surrounding community?
    An independent noise survey is periodically carried out to determine the overall noise level generated in the plant and also the surrounding perimeter fence. In addition, noise surveys will also be carried out for significant plant changes and projects with the potential to alter Malaysia National Oil’s noise contour.
  3. Malaysia National Oil operations generate wastes on a continuous basis. What does Malaysia National Oil do to manage its waste?
    Waste management is an important area for the protection of the environment. We have incorporated controls to reduce waste generation into procedures and working practices. All wastes are identified, segregated and safety stored prior transport and disposal. All waste generated is being tracked and recorded from generation to final disposal.