Dateline 2011-06-05:
Malaysia’s oil and gas (O&G) sector continues to see some upside with fabricators consolidating, new contracts being awarded and further joint ventures in the works.
INVITATION TO TENDER: A host of companies in Asia are understood to have responded to invitations to tender for module construction, and these proposals are being evaluated by Chevron and Bechtel, the main LNG contractor for Wheatstone, says Ching.
According to the head analyst of ECM Libra Capital Sdn Bhd (ECM Libra) Bernard Ching, one notable highlight was MMHE Sdn Bhd (MMHE) and Sime Darby Engineering Sdn Bhd (SDE) entering into a memorandum of understanding (MOU) for the sale of SDE’s Pasir Gudang yard.
The yard, which consists of 130 acres, would be sold to MMHE for RM399 million.Ching believed that the price was close to book value and would be positive for both companies should the transaction materialise.
“The acquisition would effectively double MMHE’s yard space, giving room for its major order book growth,” he noted in his online report.
For SDE, the disposal would see the group having more resources to focus on cash cows like plantations, industrial and motors divisions.
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Wata - Malaysian Oil and Gas Engineer 