Destini to complete Samudra Oil purchase by end of the month

by **Cals** Wed 12 Mar 2014, 08:30

[size=33]Destini to complete Samudra Oil purchase by end of the month[/size]

Posted on 12 March 2014 - 05:37am

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[size=14]PETALING JAYA: Destini Bhd expects to complete the purchase of Samudra Oil Services Sdn Bhd from Kejuruteraan Samudra Timur Bhd for RM80 million by end of the month.

In a statement, Destini said Kejuruteraan Samudra Timur had received approval from its shareholders for the disposal of Samudra Oil at an EGM held yesterday.

The acquisition will be fully satisfied via the issuance of 228.6 million Destini shares at an issue price of 35 sen per Destini share.

Group managing director Datuk Rozabil Abdul Rahman said the acquisition is also timely as the oil and gas industry is expected to be robust led by the potential investments into the oil and gas exploration and production activities.

"Samudra Oil's track record and global client base puts us in good stead in capturing these opportunities," he said.

"Furthermore, this acquisition is in-line with our goal of making Destini a one-stop centre for integrated engineering solution services. The acquisition is synergistic with our marine division as we would be able to offer the oil and gas customers with our other marine products and services namely life boats and rafts, and maintenance, repair and overhaul services in the safety, survival and rescue equipment," he said.

Rozabil said Samudra Oil has a healthy order book, which will keep the company busy for the next five years.

Currently, he said Samudra Oil has on-going contracts with global oil majors such as Petronas Carigali Sdn Bhd, ExxonMobil Exploration and Production Malaysia Inc, MDC Oil & Gas Ltd and JX Nippon Oil & Gas Exploration (Malaysia) Limited.

Samudra Oil provides tubular handling equipment and running services, which is a very niche and specialised segment directly in support of upstream oil and gas drilling activities, particularly in the exploration, development and workover activities.

"We believe our acquisition of Samudra Oil augurs well for the group moving forward. The tubular handling services business plays a vital role to the oil and gas industry," he said.
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