Two Malaysian companies are coming together to support the growth of offshore energy services locally and across the region.
Oil and gas services provider Handal Energy and BumiRaya Petroleum have signed a joint venture agreement to establish a special purpose vehicle that will support the offshore crane services market.
Offshore lifting and other specialist services will play an integral role in the ongoing development of Malaysia’s energy sector, and the wider region, supporting projects and maintenance on new and existing platforms in all areas from well interventions through to decommissioning.
A statement posted to the Malaysian stock market noted that the joint venture expects a “big order book” from the oil and gas sector, as it targets “hundreds of offshore platform opportunities” across the Asia-Pacific region.
The collaboration aims to combine Handal’s financial strength and technological foundation as a listed company with BumiRaya’s flexibility in professional engineering services and market expansion, said BumiRaya managing director Taha Sheikh Mohammad.
“Through our partnership with Handal, BumiRaya will enhance its corporate image and share the advantages of a listed company in financing, such as private placements, rights issues, or bond financing, which will provide the financial impetus for future large-scale expansion.”
Handal will hold a 60% stake in the joint venture, while BumiRaya will hold 40%.
Taha Sheikh Mohammad added that BumiRaya recently completed a RM1 million (US$252,000) crane project from Petra Energy, and currently has 63 similar potential contracts, which it plans to transfer to the joint venture for execution.
According to the statement, there are currently 420 offshore cranes in the region.
Handal, which has experience in manufacturing, refurbishment, repair, leasing and engineering services, owns 15 cranes ready for immediate operation, supporting various offshore platforms.
BumiRaya, a private company established in 2012, holds 12 Petronas operating licenses and is focused on providing specialised technical services, including project management for offshore pedestal cranes and lifting equipment.
Its track record includes work on numerous large-scale projects off Malaysia, Thailand and Brunei, with clients such as Hess and Petronas.
“Looking ahead, with oil prices expected to remain high in the coming years, Handal and BumiRaya are optimistic about order growth,” the statement concluded.
“Both parties believe that this joint venture will more effectively integrate resources, providing a one-stop solution from crane upgrades, such as hydraulic and electrical system updates, to crane leasing, fully capitalising on the golden opportunities presented by the oil and gas industry's recovery.”
