VOLUME 21 NO. 4 KDN: PP 7878/12/2012 (031611)

THE MAGAZINE FOR MALAYSIAN PETROLEUM CLUB MEMBERS (MALAYSIA)

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Growing up in Peringgit, Melaka in the 1970s, Zahid Osman – Director, Gas Business (LNG &

New Business Development) of Shell Malaysia – did not ever imagine he would end up in the oil and gas business, let alone chalk up 19 years and counting. “We didn’t own a car, so we never visit-ed a petrol station...,” says Zahid candidly. “If I ever gave a thought to what I wanted to be, it was probably more along the lines of doctor, policeman or teacher,“ he adds.

The youngest of four siblings born to an insurance officer and a homemaker who subsequently taught in a kindergar-ten credits his father for pushing him to succeed. “He always stressed the impor-tance of education, saying that he could not give us much in terms of inheritance but that a good education would open doors for us. And that we should seize the opportunity when it came by and not wait for things to fall into our lap,” says Zahid.

And so, young Zahid did just that. At a prestigious boarding school, the Maktab Rendah Sains MARA (MRSM) Melaka, he excelled both in studies and sports such as football, badminton and volley ball. Exhibiting strong leadership qualities from an early age, he was also elected Head Prefect and thoroughly enjoyed his secondary years.

“Going to boarding school was the first rung in my awareness of the world be-yond Peringgit. There were all the city boys from KL, PJ and Ipoh ... having them as fellow boarders and indulging in mid-night chats helped open my eyes to the inherent possibilities out there. Having to negotiate the twists and turns of board-ing school also gave me a better han-dle on dealing with different personality types,“ he reminisces Zahid.

It is evident from his 6ft 2in frame that, unlike some of his fellow students of smaller stature, Zahid was never the tar-get of bullies and, in fact, stopped many an “incident” from taking place!

Arriving in the UK to pursue a degree in Industrial Economics was to further shape Zahid’s view of the world. Studying and living with students of different back-grounds was an eye-opening experience. He credits his time in England with be-stowing upon him the confidence and ease to deal with people from different nationalities, and this has had definite advantages when working in the oil and gas sector.

Upon returning to Malaysia, Zahid had a short stint in Renong Berhad before join-ing Shell in October 1995. Since then, he has held many positions in different portfolios within the company, including finance, business development, strategic

PEOPLE PERSON AND PERFECTIONIST AT HEARTWhether it’s driving the gas business or mentoring young professionals, Zahid Osman – Director, Gas Business (LNG & New Business Development) of Shell Malaysia – doesn’t believe in doing things by half measures. By Helen Ann Peters

PersonalitiesIndustry Features 21 ResouRce

“Studying and living with students of

different backgrounds was an eye-opening

experience.”

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relationship development, LNG market-ing and trading and production sharing contract (PSC) and JV governance.

As Zahid pursued his degree under the purview of a Jabatan Perkhidmatan Awam (JPA) Scholarship, he was duty bound to serve the government for 10 years. By opting to work in the private sector, it meant that he had to be re-leased from his bond by repaying part of the scholarship. Zahid was able to nego-tiate a schedule of payment and contin-ued to honour his commitment because he felt that another student could benefit from the fund.

As there was always the opportunity to learn something new at Shell, Zahid has never felt the need to look for prospects elsewhere. “Working in a multinational like Shell affords you the possibility to take on disparate roles and get acquaint-ed with the many aspects of the oil and gas business. There was never a dull mo-ment and I feel privileged to have worked in various places such as Miri, Singapore and Tokyo.”

Zahid continued to challenge himself and while delivering in a full-time position, he embarked on his MBA with the Univer-sity of Chicago Booth School of Business, in the US, graduating in 2012 after 20 months of gruelling hard work.

A string of firsts

In 2000, the LNG scenario was very dif-ferent from what it is today. Spot sales were an alien concept then as most LNG contracts were long term, averag-ing about 20 years each. As LNG Market Development Manager, Zahid, working closely with an LNG project in Malaysia and the wider Shell network, successfully brought to fruition the project first spot cargoes to Spain and the US.

During that same period, he introduced the concept of LNG cargo swapping be-tween LNG suppliers and buyer. The po-tential of creating value through this ar-rangement (by minimising transportation costs – a big portion of the costs in LNG transactions) glued the parties together to see it through until the end.

In 2003, Zahid was posted to Tokyo as Marketing Manager of Sakhalin Energy LNG Marketing Company, a Shell JV enti-ty. He successfully negotiated many long term supply deals with customers in Ja-pan and Korea which contributed signifi-cantly as revenue streams for the project. During the course of the negotiations, he witnessed grown men break down and cry because they were under so much pressure to get the best deals for their company. Zahid honed his negotiating skills during these intense discussions to ensure sustainable and value-added out-comes for all. These clients have main-tained good ties with Zahid.

“I was the only Malaysian working on this Russian project, based in Tokyo and selling to Koreans and Chinese in addi-tion to customers in Japan. You can’t get more cross-cultural than that ... I really enjoyed my stint in Japan. Both my family and I love Tokyo and I promised them that we’d be back to visit one day,” says Zahid.

Zahid was then posted to Singapore where he took up the position of Head of LNG Marketing and Trading – Japan. He concluded LNG term agreements with suppliers and buyers in Malaysia and Japan including the first LNG purchase between Shell and an Asian National Oil Company, and Shell’s first direct term supply deal into Japan.

PersonalitiesIndustry Features 23 ResouRce

Zahid was always one for unorthodox manoeuvres. Just because something had never been done, it didn’t mean that it couldn’t be. During his tenure in Sin-gapore, he successfully negotiated the first diversion of Nigerian LNG cargoes into Japanese markets. Having access to Shell’s global LNG portfolio meant that Zahid and his Shell counterparts could capitalise on market volatility, divert car-goes to places where it would sell at a higher price, and obtain supply from else-where to honour the original deals. This diversion arrangement enables Shell to create value for itself, the LNG supplier (getting better value for its LNG cargoes) and the LNG buyer (by improving the se-curity of supply).

Driving the gas business

Zahid was appointed to his current role in May 2012. He is responsible for man-aging Shell’s LNG business in Malaysia and identifying new business opportuni-ties related to gas. With the current gov-ernment initiatives to liberalise the gas market locally, Zahid plays an active role in the ongoing efforts by bringing Shell’s experience from other parts of the world and tapping into the strength of the glob-al Shell network.

Market uncertainty about the supply of LNG originating from the US is one of the key challenges facing the gas busi-ness today. Many potential customers are hopeful that this will have a dampen-ing effect on the world’s LNG prices but Zahid believes that this will still need to be proven true as the cost to develop a greenfield LNG project onstream re-mains quite high.

Asset integrity and process safety are also another concern of the industry. Shell currently has a Goal Zero policy in place; this means all their assets are oper-ated and maintained to ensure there are no leaks and all the facilities remain in tip top condition. Shell leaders also practice a “Chronic Unease” mindset where they are aware of weak signals and have the responsibility to take effective and timely decisions on them.

Another challenge that is facing the in-dustry is the availability of skilled resourc-es. The current development of so many LNG projects globally, especially in Aus-tralia and the US, put a lot of pressure on industry players to ensure sufficient skilled resources for projects.

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to employment. Says Zahid, “Young people need to see the interconnectedness of things. If we are able to articulate how their actions contribute to the bottom line, they are more willing to come along for the ride. Unlike, perhaps, our generation who more easily accepted instructions, Gen Y tends to have more questions on the validity of an action before doing anything. This can be positively harnessed and it is up to us then to give them the tools and training and empower them so that they can reach their goals.”

Zahid believes in leading by example and quite often rolls up his sleeves and pitches in to get a job done. He says that this has often proved to be a good strategy since it motivates his team to see their leader working hard to achieve a common goal. He admits to being a perfec-tionist and always exhorts his staff to be professional at all times.

He clearly remembers the admonition by the ex-Shell Malaysia Country Chair, Dato’ Saw Choo Boon. “If one person says you are good, then be careful. The person may have an ulterior motive. But if many people say you are good, then it’s probably true because different people see different facets of your personality and the composite picture tends to be more accurate.”

Zahid is married to Ira Seriwati, a medical doctor who opts to put family first before her career. “ I have been very fortunate to have Ira by my side. She has been very supportive of my career. Spending more time at home, she plays a more active role in managing the children. The thought gives me peace of mind in the office. We enjoy family vacations together with my three kids and I like go-karting with my boys. I also play golf since I can combine this with work,” says Zahid.

When asked if he had anything on his bucket list, Zahid answers, “Mentoring young people gives me a great deal of satisfaction – to be able to pass on my experiences and the lessons I have learnt in life. I am also looking to give more back to society and I am actively searching for the right platform, perhaps by working with an NGO or something similar.”

When he does, you can be sure that Zahid will give his all to this endeavour. No half measures for this perfec-tionist because for him, if it’s worth doing, it is certainly worth doing well.

As the Vice President of the Malaysian Gas Association (MGA) , Zahid leads the Gas Advocacy Initiative in Shell Malaysia and supports the region’s gas advocacy strategy. This is a role of increasing im-portance given the Shell Group’s posi-tion in Asia. Zahid also uses MGA as a platform to share Shell’s best practices in Health, Safety, Security and Environment (HSSE) with the industry with the aim of supporting the organisation to cre-ate safety awareness among the public. The active involvement of Shell in MGA’s PRESTIGE programme is a great example of this sharing.

Mentoring the young

Zahid confesses to being passionate about developing young people. He agrees that there must be a concerted effort to guide young people into the in-dustry and was happy to note that the World Gas Conference 2012 held in Ma-laysia included a comprehensive youth programme. He is a Co-Chairman of a steering committee that oversees the Shell Chair Professorship in Petroleum Geosciences at Universiti Technology Petronas (UTP).

Zahid also leads the Shell Campus Ambassador Team for UTP – a team responsible for promoting Shell at the university and identifying top talent for recruitment. Contrary to what some employers have alleged, he understands that Generation Y have different motivations and approaches