Scomi, Handal team up for Africa, Middle East venture

by **Cals** Fri 24 Jan 2014, 16:25

Business & Markets 2014

Written by Cynthia Blemin of theedgemalaysia.com

Friday, 24 January 2014 09:43

KUALA LUMPUR: Scomi Oiltools Sdn Bhd, the oilfield services unit of Scomi Energy Services Bhd (SESB), and offshore crane services provider and fabricator Handal Resources Bhd have teamed up to supply modular workover rig, offshore pedestal cranes and related services to oilfields in Africa and the Middle East.

The partnership includes the supply of services for operations, repair and maintenance.

Under the memorandum of agreement signed yesterday, both companies will enter into a specific agreement to formalise working arrangements in relation to the supply of equipment and related services within the next six months.

SESB chief executive officer Shah Hakim Zain said the collaboration will pave the way for future collaborations where Malaysian companies are better able to work together in foreign lands, promoting Malaysian services and expertise worldwide.

“We are proud to be part of this collaboration which combines the expertise of Malaysian companies at an international level,” he said in a statement yesterday.

Shah Hakim added that the collaboration leverages the two companies’ strengths that would allow promotion of home-grown solutions in countries where Scomi has a presence. This includes countries such as Nigeria, the Congo as well as Middle Eastern countries such as Egypt, Oman, Saudi Arabia, and in United Arab Emirates.

“While the collaboration with Scomi Oiltools speaks volumes of Handal’s quality and reputation, it also allows us to better market our brand and leverage on their existing global clientele, translating into enhanced prospects for the group,” said Handal group managing director and chief executive officer Mallek Rizal Mohsin in a separate statement yesterday.

On Jan 8, 2014, SESB bagged two three-year contracts in Myanmar worth a combined RM90 million from Petroliam Nasional Bhd (Petronas) to provide drilling fluids, solid control, wellbore cleanout, drilling waste management equipment, materials and services.

In a recent note to clients, HLIB Research said it was positive on SESB’s award in Myanmar, as the group continues to secure contracts despite its already huge order book.

This article first appeared in The Edge Financial Daily, on January 24, 2014.