Ranhill Energy and Resources Bhd announced a delay to the company's listing on the local stock exchange Bursa Malaysia after an affiliate's license was suspended by Malaysia's national oil and gas company Petroliam Nasional Bhd (Petronas) following a review of a construction project.
Petronas announced an indefinite suspension of the license held by Perunding Ranhill Worley Sdn Bhd (PRW) in a letter July 17. Without the license, PRW cannot bid for any projects from Petronas - which forms a significant portion of Ranhill's oil and gas business revenue in Malaysia.
"The suspension follows Petronas' review in relation to the Engineering, Procurement, Construction and Commissioning (EPCC) of Topside Construction Work for the LNG (liqufied natural gas) Regasification Facilities Project in Melaka (Regas Project). The suspension does not affect any ongoing projects that are being undertaken by Ranhill or its subsidiaries," Ranhill said in a company announcement.
Ranhill CEO Hamdan Mohamad owns 90 percent of PRW and Kamarulzaman Omar holds the remaining 10 percent. PRW has an exclusive agreement to appoint Ranhill WorleyParsons Sdn Bhd (RWorley) - which is 51 percent-owned by Ranhill and 49 percent owned by Australian oil and gas engineering company WorleyParsons Ltd. - for projects it wins in Malaysia.
Ranhill, as the holding company of RWorley, which worked on the Regas Project, has submitted an appeal to Petronas July 18 against the suspension and is now awaiting its formal response.
Ranhill was originally scheduled to list on the local stock exchange July 31 following the company's recent initial public offering (IPO) to raise $236 million (MYR 753 million) on Bursa Malaysia.
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