KUALA LUMPUR: Bintai Kinden Corp Bhd has partnered with Marafie Co to supply piping materials to oil and gas (O&G) companies in Saudi Arabia.
To formalise the collaboration, the company said its subsidiary, Bintai Energy Sdn Bhd (Bintai Energy), has signed a marketing and distribution agreement with Marafie.
"Under the agreement, Marafie will act as a representative of Bintai Energy to engage in oil and gas development in the region of Saudi Arabia," it said.
Bintai Kinden executive director Azri Azerai said the company foresees the demand for piping materials and equipment related to the O&G industry to escalate in tandem with the recovery in the global O&G market.
"Saudi Arabia is an oil-rich country. It possesses around 17 per cent of the world's proven petroleum reserves.
"We hope to tap into our local partner network and win more O&G contracts in the region.
"We believe this partnership will further accelerate the growth of our new business venture, and we are excited by the immense opportunity ahead of us," said Azri.
Marafie provides total solutions to complicated fabrication projects, from the sales and bidding of the project to construction engineering, scheduling, quality assurance, logistics, and follow-up with the customer.
Marafie Group has established fabrication facilities and offices and regional sales offices in the Kingdom of Saudi Arabia.
The agreement is for three years and is subject to further extension of time upon mutual understanding by Bintai Energy and Marafie unless termination notice in writing is given by either party 60 days before the termination.
The agreement 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.