June 22, 2016 [The Edge Markets] - Sanichi Technology Bhd has teamed up with licensed Petronas vendor Petrowangsa Sdn Bhd (Petrowangsa) to jointly bid for Petronas’ oil storage tank terminal contracts in the oil and gas (O&G) industry in Malaysia and the region.
The two parties inked a memorandum of understanding (MoU) to form the alliance today, according to Sanichi’s bourse filing.
Under the MoU, Petrowangsa will award, subcontract or nominate Sanichi as contractor, should it secure contracts in relation to its licences with Petroliam Nasional Bhd (Petronas), while Sanichi will provide mechanical engineering solutions to Petrowangsa.
Sanichi said the MoU is not expected to have immediate effects on the issued and paid-up share capital, or net assets and earnings per share of Sanichi group for the financial year ending June 30, 2016.
In a press statement, Sanichi managing director Datuk Seri Dr Jacky Pang said the group is “very excited” about the partnership, as the value of the oil storage terminal projects under Sanichi’s radar in Malaysia and around the region, is estimated to be above RM1 billion.
Petrowangsa managing director Datuk Azrulnizam Abdul Aziz said the company has licenses from Petronas to commission floating roofs, fixed roofs and cryogenic storage tanks, as well as to provide mechanical engineering and maintenance services for those oil storage tanks.
Pang said the Pengerang Integrated Petroleum Complex (PIPC), one of the key growth initiatives under the Economic Transformation Programme (ETP) will serve as an important catalyst for future collaboration with Petrowangsa, since the PIPC is being developed into a regional oil storage and trading hub.
“The development of Pengerang Deepwater Terminal, a RM5 billion project, will serve as a centralized storage facility for PIPC, offering a storage capacity of 5 million cubic meters, by the year 2020,” he added.
Separately, Sanichi updated that negotiations are still on-going on whether Lembaga Tabung Angkatan Tentera will be taking up a stake in the company.
The automotive mould maker cum property developer cited news reports saying should LTAT’s acquisition of up to 5% materialise, LTAT will be the second largest shareholder in the company, after Pelaburan Mara Bhd which owns 8.56%.
Sanichi shares closed unchanged at 14 sen today, for a market capitalisation of RM143.92 million.
