Tanjung Offshore Mulls Brownfield Development Ventures in Malaysia, SE Asia
Tanjung Offshore Berhad, an oil and gas services provider in Malaysia, is looking into the possibility of venturing into brownfield development in the country, according to national news agency Bernama Thursday.
"We will try to focus on Sabah, Sarawak and Terengganu as most of the fields are brownfields," the company's Executive Deputy Chairman Tan Kean Soon said after the company's annual general meeting, adding that Tanjung Offshore was in talks with two international oil operators to form a consortium or partnership for the business venture.
While initially focused on Malaysia, the firm would also look into the prospects of moving into neighboring countries like Indonesia, Vietnam and Myanmar and the other parts of Southeast Asia.
On oil and gas services, Tanjung Offshore plans to strengthen its maintenance services. The company also intends to venture into offshore support vessels (OSV) niche market, but only when the vessel charter rates are favorable, he added.
Despite the slowdown in the oil and gas sector caused by a 40 to 50 percent decline in global oil prices since the second half of 2014, Tan noted that industry players still need to spend on services and maintenance, citing recent work clinched by the company for topside maintenance as well as maintenance of safety equipment on platforms.
Earlier this month, the firm's subsidiary Tanjung Offshore Services Sdn Bhd secured a $66.8 million two-year contract from PETRONAS Carigali Sdn Bhd for work offshore Sarawak, Malaysia.
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