Highlight Could Halim Saad return to corporate world with a bang?

Highlight Could Halim Saad return to corporate world with a bang?
Business & Markets 2013
Written by Jeffrey Tan of theedgemalaysia.com
Friday, 13 December 2013 16:51

KUALA LUMPUR (Dec 12): Former corporate high-flyer Tan Sri Halim Saad appeared determined to return actively to the business world when he announced at a press conference earlier this week that he is eyeing 3-4 more oil & gas fields in Central Asia.

This is in addition to the Rakuschechnoye O&G field jointly controlled by Markmore Energy (Labuan) Ltd (MELL), which is owned by Halim, and listed Sumatec Resources Bhd, controlled by Halim.

When responding to market talk that he is keen to recruit big names in the O&G industry, such as former Petronas President Tan Sri Hassan Marican, to join the board of directors at Sumatec, he kept speculation active without denying.

“Hassan is my friend,” he replied emphatically.

“Who else do you want? We have big names on the board already,” he said, citing the current board members as ‘big names’.

The “big names” include former attorney-general Tan Sri Abu Talib Othman, Datuk Shireen Ann Zaharah Muhiudeen and Datuk Ahmad Johari Abdul Razak.

When he was also asked if he would inject Sumatec with more O&G fields, Halim half-jokingly said: “If you can find more assets [O&G fields] for me at the right quality, I will inject them in at the right price.”

In jest, he quipped: “I will ask Sumatec to buy them.”

He said these O&G fields would be similar in size to the Rakuschechnoye O&G field, which has an area of 354 sq km with proved reserves of 22.36 million barrels of oil.

Halim, who holds 99.99% stake in MELL, said he intends to lead the private firm into the O&G downstream industry. He said MELL would buy gas from Sumatec to produce gas-related products.

MELL is a firm that offers engineering development services to oil and gas companies.

“We will have enough gas to produce urea, ammonia, liquefied petroleum gas, compressed natural gas and methanol,” said Halim, adding, “Our buyers will be from the domestic market, Kazakhstan, Azerbaijan, Russia and Europe.”

At the press conference, Halim was also asked if the domestic market buyers would include national oil company Petronas. The question, looked sensitive, drew laughter across those present at the press briefing.

“We do not want to mention Petronas,” he replied with caution, before elaborating that he was once queried by the authorities in relation to an article on him, Sumatec and Petronas.

Halim said MELL would build O&G downstream facilities in Kazakhstan as the oilfield (Rakuschechnoye O&G field) is near the Caspian Sea. “Access is very easy as we can build a pipeline to the port.”

Indeed, Halim’s name in the corporate scene has been kept alive in recent months due mainly to his control of Sumatec and his suit against the government.

Sumatec has entered into an agreement for the gas development and production of the said O&G field, with MELL. Work will start next year. This has been a running story for months.

The suit Halim filed against the government in April had also brought him back to the limelight, which the protégé of former Finance Minister Tun Daim Zainuddin used to enjoy when he was heading and controlling Renong/UEM Gourp in the 1990s.

But on Oct 31, 2013, the Kuala Lumpur High Court struck out his RM2 billion lawsuit against the government, Khazanah Nasional Bhd and former Minister Tan Sri Nor Mohamed Yakcop.

In his suit filed in April this year, Halim alleged that Nor Mohamed, the government and Khazanah Nasional had ‘fraudulently induced’ him to sell the Renong and UEM group shares to Khazanah in 2001 and 2003.

Renong and UEM were companies linked to the government and the main ruling party UMNO when Tun Dr Mahathir Mohamad was the UMNO president and the country’s prime minister.

With his suit against the government and his uneasy relations with the current administration, it might be difficult for Halim to return to the local corporate scene with a vengeance and regain the envious status of the past.

Although he is in control of Sumatec, a penny stock struggling to lift itself out from PN17 (Practice Note 17/2005) status, it may be difficult for Halim to walk around like an influential corporate chieftain with an air again – at least not in the near future.