BINTAI Kinden Corp Bhd has partnered Marafie Industrial Co to supply piping materials to oil and gas (O&G) related companies in Saudi Arabia.
A subsidiary of Bintai Kinden, Bintai Energy Sdn Bhd entered into a marketing and distribution agreement with Marafie today.
Under the agreement, Marafie will act as a representative of Bintai Energy to engage in O&G development in the region of Saudi Arabia.
The agreement is for a three-year period and subject to further extension of time upon mutual agreement by Bintai Energy and Marafie, unless termination notice in writing is given by either party 60 days prior to the termination.
Bintai Kinden ED Azri Azerai said the company foresees the demand for piping materials and equipment related to O&G industry to escalate in tandem with the recovery in the global O&G market.
“Saudi Arabia is an oil rich country. It possesses around 17% of the world’s proven petroleum reserves. We hope to tap on our local partner network and win more O&G contracts in the region,” he said in a statement to the local bourse.
Marafie chairman Abdullah Bayounis said: “We are optimistic about the collaboration with Bintai Energy. The company is currently working to get a few contracts in Saudi Arabia.”
The agreement is not expected to have any material effect on the issued and paid-up share capital of Bintai Kinden, but is expected to contribute positively to the future earnings of the group.
Marafie is a company providing total solution to complicated fabrication projects, from the sales and bidding of the project to construction engineering, scheduling, quality assurance, logistics and follow-up with the customer. Marafie Group has established fabrication facilities, offices and regional sales offices in Saudi Arabia.
Bintai Energy is a 51:49 joint venture between Bintai Kinden’s wholly owned subsidiary, Kejuruteraan Bintai Kindenko Sdn Bhd and Petro Flanges & Fittings Sdn Bhd (PFF). It is the special purpose vehicle identified to supply materials and equipment to the local and international O&G industry including the Middle East via the distributorship channel of PFF. — TMR/pic by bintai.com.my