Oil and gas industry: 'What will happen if I lost my job?'

In the midst of consumers enjoying low oil prices, there has been a silent sorrow by those working in the oil and gas (O&G) sector.

O&G companies and governments that rely on crude oil prices for its revenue and profits have been hurt badly.

Many O&G companies have started slashing their employment to manage costs that have increased to face the gloomy days.

Petronas, in a statement recently announced that it will revise the workers' status, salary and employment duration.

Globally, O&G giants such as Shell, BP and Technip have began their employment cuts.

Astro AWANI steps into the lives of individuals from the O&G sector in Labuan, as they share their past achievements, current difficulties and future hopes.

"I was no longer needed"

Isli Ismail, 42, was among those who received the devastating news of losing his job in an international O&G company two years ago, in the company's efforts to reduce its operational expenditure.

"A month before I lost my job, my employer informed a number of us to be prepared to leave the company.

"Then a month later, I was told that they no longer need my services because of the depreciation of global oil prices," Isli said.

He could not see light at the other end of the tunnel, facing only the darkness of being unemployed, with absolutely no source of income.

Determined to rise again for the sake his family, Isli became a lorry driver, just so he could put food on the table.

Several months later, he successfully earned himself a job in a local O&G company albeit with a lower salary.

"It has been difficult for me because my salary used to be pretty high, and there is a large difference to what I'm earning now. I'm not going to lie, supporting my family has not been easy," he said.

To adapt to the rising cost of living in Labuan, Isli started a small food catering business with the help of his family and neighbours.

He said, if the difficult situation persists, he would have to sell his car.

Despite his sorrow, Isli can still manage a smile. - All photos by Astro AWANI/Pritha Manivannan

Despite his sorrow, Isli could still manage a smile. - All photos by Astro AWANI/Pritha Manivannan

Personal bank loan to help with expenses For another O&G worker who was laid off, getting a personal bank loan became the last resort for 30-year-old Rusdi Mokti to support his family. "At that moment, I could only think of my kids. I need to feed them. "The compensation money given to me was running out. So I had to take a loan and that too, has not been able to help my situation completely," Rusdi said. He is now banking on the promise of his previous employer to re-employ him, should the oil prices regain its momentum. Meanwhile, job losses in the sector has been haunting workers who are still in service.

Rusdi spending quality time with his family.

Rusdi spending quality time with his family

A senior inspector in a local O&G company, Mohammad Ecooball Abu Bakar, said his fate too, depends on the oil price. "In terms of revenue, our company has been affected ever since the oil crisis started. I am definitely worried about losing my job," he said. Human Resources Development Fund (HRDF) chief executive, Datuk CM Vignaesvaran, said the slashing of employment in the O&G sector is at an early stage and is predicted to continue. "What we are experiencing currently is only the beginning of a long process. The depreciating oil price has made many companies reduce its workforce. This is just the beginning. "But we are also hearing stories that a number of companies are re-employing its workers. This is because these companies prefer to have workers that they know are valuable," Vignaesvaran said. He added, those who lost their jobs could use their experience to their benefit by applying it in other sectors, especially in manufacturing, which was currently doing well.

An oil rig in Labuan

An oil rig in Labuan

Other sectors affected

The O&G sector which has been the pulse of Labuan is now affecting the lives of its people. The high unemployment rate is affecting businesses that have been sharing benefits of the black gold. According to a fruit seller, who wants to only be known as Zatinah, she had to lower her prices to attract customers which had been dwindling in numbers. "I've been suffering losses. Till today, I have lost almost RM30,000. I have no choice but to continue my business for a living," Zatinah said.

“

I have no choice but to continue my business for a living

”

- Zatinah

She hoped that the launching of the Urban Transformation Centre (UTC) next to her stall location would help her business. Other than businesses, taxi drivers have also been affected by the gloomy O&G sector. "We are definitely affected because customers have been reducing. Previously, I could easily earn up to RM300 daily. Now ,it's so difficult to even earn RM100. At most we can get is RM80 per day," said cabbie, Mammanore. Another cabbie, Abdul Ghani Said, said although he works overtime, his income still did not match what he used to earn. "Despite the extra hours, it is still the same. Even if I change my parking destination, it is the same. This is because most of our customers were workers from the O&G sector," he said. Many of those interviewed opined that a drastic action plan was needed for the people of Labuan, to ensure that they could support themselves with the ever increasing cost of living.

This underutilised beach in Labuan can be a potential tourism spot.

This underutilised beach in Labuan could be a potential tourism spot

Focus on tourism and education Following the depreciation of the petroleum industry, Labuan now needs to find an alternative to spur its economic growth. Prepared with an action plan, Labuan MP Datuk Rosman Isli said tourism and education will be developed in the federal territory. He said Labuan has the appropriate infrastructure to support both these sectors and needs to only focus on the promotion. "The number of hotels and restaurants in Labuan has increase in past years. This is a positive sign for tourism," Rosman said. He said Labuan's ambience is conducive enough to become an educational hub. "Labuan is laidback, clean, peaceful and safe to be made into an educational hub. "We already have a number of public learning institutions in Labuan. However, the number of private institutions needs to be beefed up to encourage the inflow of foreign students." Rosman added that the diversification in its economy would promote job opportunities which will also directly help the laid off O&G workers find a new light of hope.