Wah Seong and Dialog Form New Oil & Gas JV

Two of Malaysia's leading oil and gas players, Wah Seong Corporation Berhad and Dialog Group Berhad, are pooling their resources to tap the world's oil and gas market via a 50-50 joint venture company.

In an agreement signed today, the new JV to be incorporated in Hong Kong, will promote and market the entire range of oil and gas services and products offered by both parties. It will also explore and develop fresh business opportunities worldwide.

Some of the joint products and services include specialized pipe coatings for offshore and onshore oil and gas pipelines; rental of gas compressors; design, engineering and fabrication of process equipment; oil and gas exploration and production support services such as corrosion protection, drilling equipment and pipeline inspection; specialist technical services and products; engineering, construction and maintenance services; fabrication; centralized tankage facility services; as well as catalyst handling services.

The agreement was signed through WSC's and Dialog's wholly owned subsidiary -- Wasco Energy Ltd (WascoE) and Dialog Systems (Asia) Pte Ltd (DSA) respectively.

At the signing ceremony, WascoE was represented by Chan Cheu Leong, Group Chief Executive Officer and Managing Director of WSC and DSA was represented by Ngau Boon Keat, Chairman and Group Managing Director of Dialog.

WascoE, the oil and gas arm of WSC has four main business units and is predominantly involved in specialized pipe coating services; engineering, procurement and construction (EPC); fabrication and rental of gas compressors and process equipment; corrosion protection as well as exploration and production (E&P) products and services. It has operations in ten countries including Malaysia, Singapore, Australia, Nigeria, Saudi Arabia and the United States.

DSA is the investment holding company for Dialog's regional businesses in the oil, gas and petrochemical industry.

Dialog is based in Kuala Lumpur and has offices and facilities in Malaysia, Singapore, Thailand, Indonesia, Vietnam, China, Hong Kong, Australia, Saudi Arabia and the United Kingdom. It has business interests and customers throughout the Asian Pacific region, Middle East and Europe. Among its customers are multinational oil majors, national oil companies, as well as multinational engineering and construction firms.

Commenting on the JV, Chan Cheu Leong, Group Chief Executive Officer and Managing Director of WSC said, "The two companies are a great fit and the combination will draw complementary products and technology.

"Together with outstanding employees from both organizations, we are creating a formidable company, one that is able to compete with the best in the ever expanding oil and gas industry.

"WSC and Dialog are strong companies possessing technical know how, assets and a shared vision for growth. Both companies also have strong corporate values and culture, as such I believe this joint venture will expand our global market presence and provide us with excellent growth prospects," said Chan.

Ngau Boon Keat, Chairman and Group Managing Director of Dialog agreed, "This new joint-venture company will have the people, technology and assets to create one of the premier providers of services and products to the oil and gas industry in the region and the world. I'm excited about the opportunities this will provide for the future growth of our business, our customers and employees.

"Both Dialog and WSC recognize the synergies between the two companies and have created an entity that will strengthen our business structure by enabling us to provide a wider range of specialist technical services and products and deliver a series of exciting new services and products with huge potential to the oil and gas market," Ngau added.

Chan of WSC added that the timing to strike up the partnership is ripe as the global oil and gas industry is booming with unprecedented levels of business and optimism for the future.

Wah Seong Corporation Berhad, which was originally founded in 1994, is a public listed company on the Main Board of the Malaysian Stock Exchange (Bursa Malaysia). As a leading oil & gas service group, the company provides a wide range of services globally such as pipe coating, corrosion protection, drilling supplies as well as EPC, fabrication and rental of gas compressors and process equipment. It is also a leading distributor and manufacturer of building materials, agro-based engineering equipment and spiral welded steel pipes for water transmission and infrastructure use. The continuous expansion of WSC has encouraged the corporation to grow globally and provide first class services and products across Asia Pacific, the Middle East, Africa and America with facilities and businesses in Singapore, Indonesia, Australia, China, India, UAE, Saudi Arabia, Nigeria and the USA.

Dialog Group Berhad is listed on the Main Board of Bursa Malaysia and is a component stock of the Kuala Lumpur Composite Index. It has grown into one of Malaysia's leading integrated specialist technical services provider to the oil, gas and petrochemical industry, locally and regionally. The services provided range from upstream to downstream activities, encompassing specialist technical services and products, engineering, construction and maintenance services, fabrication, centralized tankage facility services and catalyst handling services which is now being provided globally.