Bintai Kinden has formed 51:49 joint venture (JV) with Petro Flanges & Fittings Sdn Bhd (PFF) to supply materials and equipment to the local and international oil and gas (O&G) industry including the Middle East via the distributorship channel of PFF.
The two companies are setting up the JV, Bintai Energy to capitalise on the expected O&G industry recovery as capital investments pick up at home and abroad in response to the global energy and commodity crunch.
Bintai Kinden via its wholly-owned unit Kejuruteraan Bintai Kindenko (KBK) has entered into a Special Purpose Vehicle and shareholder’s Agreement (SPV Agreement) with PFF for the strategic collaboration.
Under the SPV Agreement, KBK, which specializes in mechanical and electrical engineering services, shall be responsible to manage Bintai Energy, as well as to provide the necessary funding for the venture.
PFF will be handling the marketing work for Bintai Energy, tapping into its experience in the trading of flanges in oilfield industry plant, ship building and water treatment industries.
PFF had past record in supplying pipes flanges fittings valves and other oil and gas equipment to end clients locally and abroad for an approximate aggregated order book value of more than RM60 million.
Encik Azri Azerai, Executive Director of Bintai Kinden said, the JV is well-position to ride the expected rise in demand for O&G equipment and materials on the back of rising level of activities to address the gap between supply and demand in the
sector.
