Malaysian well interventions specialist, United Asiapac Energy Bhd, has launched an initial public offering (IPO) on the ACE Market of the local stock exchange.
According to filings lodged with Bursa Malaysia, the company aims to use the IPO to bolster its services and operational capabilities to take advantage of emerging opportunities in Malaysia’s upstream sector.
Specifically, that includes plans to strengthen its technical capabilities by acquiring new well intervention tools and equipment.
“To support future business growth, it is essential that our group has available well intervention tools, equipment and DNV-certified cargo baskets that we can mobilise
simultaneously in order to meet our project deadlines,” its stock market prospectus notes.
In line with this goal, the company plans to acquire a break-out unit for installation at its Kemaman base, to be used for the assembly and testing of well intervention tools.
Presently, the group’s tools and equipment are transported to a third-party facility within the Kemaman base for assembly, testing and inspection, which requires careful planning to ensure project timelines are met and incurs additional logistical costs.
“We also intend to purchase DNV-certified cargo baskets, which are used to transport tools during every mobilisation,” the company added.
The group boasts strategic locations in Kemaman and Labuan, which it claims give it a competitive edge over other industry players, which are predominantly international firms.
United Asiapac Energy added that it also intends to introduce new well intervention solutions to broaden its service offering.
“We plan to introduce e-line, slickline and wireline recovery services, particularly for small hole fishing,” its prospectus notes.
“In addition, we plan to offer hydrocarbon well cleanout services to remove obstructions and debris through the procurement of specialised tools. This expansion is a direct response to increasing market demand and enquiries from existing and prospective clients seeking for well intervention solutions under a single service provider.”
The company also said that it intends to expand its services in Sabah, as well as acquire a new corporate office in the Kuala Lumpur area.
Sarawak expansion is also in its sights.
“We aim to expand our market presence in well intervention solutions within Sarawak,” it notes in the Bursa Malaysia filings.
“The state presents significant opportunities for growth, driven by the anticipated increase in greenfield exploration activities and the maturing of existing hydrocarbon fields. With new fields being explored and developed, and mature fields nearing the end of their productive life, the resulting demand for well intervention, particularly P&A services, appears promising.”
