KUALA LUMPUR: TANJUNG Offshore Bhd is looking to venture into brownfield development and shipping services by leveraging on China’s largest privately-held listed oil and gas company, Jereh Petroleum Equipment Co Ltd.
It will tap Jereh’s expertise in brownfield services for projects in the peninsula and Sarawak.
Tanjung Offshore Services Sdn Bhd chief executive officer Muhammad Sabri Abd Ghani said: “With the slowdown in the industry now, capital and operating expenditure cuts are expected and these have affected us somewhat.
“We have continued to bid for new projects of about RM500 million locally and internationally, although most greenfield development projects have been deferred.
“This is the start of other ventures we will go into. What we plan to do is to be ready when the times comes for us to go back in.”
He said this after the signing of an agreement between Tanjung Offshore Services and Yantai Jereh Petroleum Equipment and Technologies Co Ltd, which will see both parties collaborating to explore oil and gas opportunities in Malaysia.
Also present were Second International Trade and Industry Minister Datuk Seri Ong Ka Chuan, China’s Ambassador to Malaysia Huang Hui Kang, Tanjung Offshore group chairman Datuk Mohd Hafarizam Harun and Jereh Group vice-president Li Weibin.
The agreement will pave the way for Tanjung Offshore to market Jereh’s services in Malaysia while the latter will provide oilfield equipment for projects awarded by Petroliam Nasional Bhd (Petronas).
In June, Tanjung Offshore secured a RM250 million contract from Petronas Carigali Sdn Bhd for its Sarawak operations.
Muhammad Sabri said Jereh’s technology would improve operating efficiency, lower costs and implement technology enhancement.
“Jereh will contribute positively to the technology transfer. This is an example of a win-win partnership as the oil and gas industry consolidates in challenging economic times.”
Jereh Group was listed on the Shenzhen Stock Exchange in 2010 with a market capitalisation of US$6.8 billion (RM29.1 billion).
China is Malaysia’s largest trading partner, with bilateral trade totalling almost US$102 billion. Both countries have agreed to an annual bilateral trade target of US$160 billion by 2017.