KUALA LUMPUR, April 10, 2015:
Shell Malaysia Ltd yesterday confirmed its IT unit in Cyberjaya is being relocated to Bangalore, which is to be one of the three global hubs for technology, after Houston and Amsterdam for the energy group.
Chairman Iain Lo said: “Cyberjaya has many other functions. While the IT arm will be migrating, we are looking for more value added functions there and not just transactional.”
He was unable to confirm exactly how many jobs may be affected by the move, but sources had earlier said around 850 jobs and 1,000 external contractors could be impacted.
Lo said the move to Bangalore is not due to the falling ringgit value or oil prices but the decision made several years ago is rather due to the environment and ease to do business from a global perspective.
He reiterated that Shell remains committed to being in Malaysia as it represents an important market for the energy giant – with an expansive involvement from retail to oil exploration activities.
“Shell has been in Malaysia for over 120 years and there are still many opportunities for the company to contribute to the nation.
“Our investments, innovation, and local impact continue to support the country’s aspiration to become a developed, high-income nation.”
The company yesterday officiated its new Kuala Lumpur office of Menara Shell – which is the group’s first project in Asia Pacific region completed under its Connect Programme for new ways of working and enhanced collaborations.
The oil giant looks to bring together 10 formerly disparate facilities across the Klang Valley into 17 floors with over 300,000 sq ft for approximately 1,700 employees in a centrally accessible locations designed to accommodate future growth and new business requirements.
On prospects, Lo said: “Despite the successes of the past, in the coming year, we will face intense challenges and oil prices at levels we have not seen for quite a while.
“The days of finding easy oil are over, today we face the challenges of deepwater, contaminated gas, aging assets and depleted oil and gas fields. Ultimately the strongest companies and countries will prevail in today’s challenging environment.
“We see growth opportunities and potential in Malaysia and continue to employ and develop Malaysian talent to run our businesses.”
Despite the challenges, he said Shell successfully made and participated in 10 discoveries during its exploration campaign from mid-2013 to 2014.
“Our gas operations in Sarawak supply gas to our own gas-to-liquids plant where we produce the worlds cleanest high-grade waxes that are exported to more than 50 countries across the globe.
“Our Sarawak speciality wax range is a key component in adhesives, from lipsticks to ink toners.”
Shell is currently working on its second deep-water venture the Malikai oil field, 100 km offshore of Sabah, he added.
Lo said the Malikai development will require 17 wells drilled from a 23,500 tonne Tension Leg Platform production facility, and is the first of its kind to be fabricated and installed in Malaysia.