KUALA LUMPUR: Bintai Kinden Corporation Bhd has bagged a series of sub-contract projects from Petro Flanges & Fittings Sdn Bhd (PFF) worth RM3 million.
The contracts were awarded to the company's sub-subsidiary Bintai Energy Sdn Bhd to supply piping materials to established oil and gas (O&G) companies in Malaysia.
Under the contract, Bintai Energy will supply high-grade carbon steel or stainless steel pipes, valves, and piping accessories to established O&G-related companies for maintenance and upgrading works.
Executive director Azri Azerai said that with the award, Bintai Energy had secured RM4.6 million contracts from PFF since April to supply piping materials to the local O&G-related companies.
"We foresee the demand for piping materials to escalate further in tandem with the recovery in the O&G industry," he said in a statement today.
Bintai Energy is a 51:49 joint venture between Bintai Kinden's wholly-owned subsidiary, Kejuruteraan Bintai Kindenko Sdn Bhd and PFF.
It is the special purpose vehicle identified to supply materials and equipment to the local and international O&G industry, including the Middle East, via the distributorship channel of PFF.
The award is not expected to have any material effect on the issued and paid-up share capital of Bintai Kinden but is expected to contribute positively to the future earnings of the company.