Malaysia's SapuraKencana Petroleum Berhad (SKPB or the Company) announced Friday that its wholly-owned subsidiary SK Services Sdn Bhd has entered into an agreement with GE Power Systems (Malaysia) Sdn Bhd to participate in a joint venture company, SapuraKencana GE Oil & Gas Services Sdn Bhd (JVC).
The JVC will "work together for the provision of after-sale services of rotating oil and gas equipment that GE’s Oil and Gas business division has sold or will sell to its customers, and such other business as the shareholders of the JVC may from time to time agree," the company said in an announcement on local stock exchange Bursa Malaysia.
SapuraKencana GE Oil & Gas Services will have an authorized capital of of $29,920 (MYR 100,000). SK Services and GE each subscribe 51,000 ordinary shares and 49,000 ordinary shares of the JVC, or 51 percent and 49 percent, respectively.
The joint venture agreement is subject to the fulfillment of a few conditions, including the JVC being granted a license by Malaysia's national oil and gas company Petronas Nasional Berhad (Petronas) pursuant to the Petroleum Regulation 1974 to provide manpower, materials, consumables, equipment and facilities necessary for the maintenance, repair, overhaul, refurbishment and performance test of gas turbines and auxiliaries under Petronas’ Standardized Work and Equipment Category.
Completion of the joint venture agreement has been set for March 31 at the latest. Upon completion, the JVA would require SapuraKencana GE Oil & Gas Services to acquire the assets and operations (including transfer of certain employees) from Malaysian Advanced Refurbishment Services Sdn Bhd (MARS), a subsidiary of SKPB, via an asset transfer agreement dated Feb. 5 for the operation of the JVC's business.
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