Project in col­lab­o­ra­tion with ACME Chem­i­cals and Se­jahtera Bu­misama

New Straits Times - - Business | News - ZARINA ZAKARIAH KUALA LUMPUR zari­naz@me­di­

ASIA Bioenergy Tech­nolo­gies Bhd is ven­tur­ing fur­ther into the oil and gas (O&G) sec­tor with plans to set up an in­te­grated one-stop chem­i­cal blend­ing hub and cen­tralised com­mon user ware­house in Bin­tulu, Sarawak.

“The in­te­grated cen­tre will fully sup­port oil­field chem­i­cal ser­vice providers like Baker Hughes, Hal­libur­ton Com­pany and Sch­lum­berger Oil­field Ser­vices as well as users in Sabah and Sarawak,” said Asia Bioenergy ex­ec­u­tive di­rec­tor Steve Tan.

“This will be a full-fledged O&G in­dus­try-com­pli­ant chem­i­cal blend­ing and ware­hous­ing fa­cil­ity, the first in Sabah and Sarawak,” he added.

The cen­tre will be set up through sub­sidiary Asi­aBio Petroleum Sdn Bhd (ABP), in col­lab­o­ra­tion with ACME Chem­i­cals (M) Sdn Bhd, a spe­cialty chem­i­cal com­pany with in-house ex­per­tise and for­mu­la­tion ca­pa­bil­i­ties, and Se­jahtera Bu­misama Sdn Bhd.

The lat­ter is a Sabah-based, Petro­liam Na­sional Bhd (Petronas)-reg­is­tered com­pany li­censed to sup­ply prod­ucts and ser­vices to ex­plo­ration and O&G com­pa­nies in Malaysia.

Asia Bioenergy will man­age and op­er­ate the fa­cil­i­ties, as well as of­fer and pro­mote blend­ing ser­vices, de­cant­ing and ware­hous­ing ser­vices, cus­tom-for­mu­lated chem­i­cal prod­ucts and ad­di­tives, and com­mon chem­i­cals and sol­vents to O&G con­trac­tors and op­er­a­tors in Sabah and Sarawak that would oth­er­wise be sourced from Sin­ga­pore.

“We will also sup­port chem­i­cal sourc­ing, blend­ing and ware­hous­ing ser­vices to up­stream ser­vice providers.

“In Malaysia, the mar­ket for the pro­duc­tion chem­i­cal cat­e­gory alone is worth RM110 mil­lion to RM130 mil­lion a year,” said Tan.

ABP op­er­a­tions head David Chuah said the part­ner­ship with ACME and Se­jahtera Bu­misama com­bined the spe­cialised ca­pa­bil­i­ties of each party.

In time, this will al­low ABP to ex­pand its busi­ness and prod­uct of­fer­ings in the O&G seg­ment.

The ven­ture is ex­pected to be licence-based, with profit-shar­ing ra­tios to be mu­tu­ally agreed upon.

“This one-stop chem­i­cal blend­ing and ware­hous­ing fa­cil­ity in Bin­tulu tar­gets the un­der-served mar­ket in Sabah, Sarawak and Brunei.

“This ini­tia­tive is aimed at curb­ing ris­ing costs faced by the O&G in­dus­try by act­ing as a huband-spoke point for all chem­i­cal con­trac­tors, pro­vid­ing cost-com­pet­i­tive lo­gis­tics in line with the ob­jec­tives of Petronas’s Coral Re­duc­tion Al­liance pro­gramme,” said Chuah.

He added that Bin­tulu had the nec­es­sary in­fra­struc­ture and an­cil­lary ser­vices to sup­port the ven­ture.

“We are pos­i­tive this will bring eco­nomic and so­cial ben­e­fits to Bin­tulu, which has been des­ig­nated as the new sup­ply base op­er­a­tion for Petronas Cari­gali Sdn Bhd’s Sarawak O&G as­sets.”

The in­te­grated cen­tre is set to re­duce op­er­at­ing ex­pen­di­ture by elim­i­nat­ing dou­ble-han­dling in op­er­a­tional ac­tiv­i­ties, op­ti­mise use of re­sources, re­duce pro­cure­ment and con­tract­ing costs and elim­i­nate cap­i­tal ex­pen­di­ture on chem­i­cal con­tracts is­sued by Petronas and its pro­duc­tion shar­ing con­trac­tors.

Asia Bioenergy Tech­nolo­gies Bhd is ven­tur­ing fur­ther into the oil and gas sec­tor through the set­ting up of an in­te­grated chem­i­cal blend­ing hub and cen­tralised com­mon user ware­house in Bin­tulu.

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