Destini and S’pore firm to explore O&G projects

KUALA LUMPUR: Destini Bhd has entered into a joint venture and shareholders agreement (JVA) with Federal International (2000) Ltd to collectively bid for oil & gas projects in South Asia and South-East Asia. Federal International is listed on Singapore Exchange’s mainboard.

On the completion of the JVA, Destini’s wholly-owned subsidiary Destini Oil Services Sdn Bhd (DOS) and Federal International’s wholly-owned subsidiary Federal Hardware Engineering Co Ltd will incorporate a 50:50 JV company in Singapore.

Destini group managing director Datuk Rozabil Abdul Rahman said the JV is expected to be set up by the first quarter of 2018.

“The oil and gas industry seems to be stabilising, and Destini will be ready to jump on any opportunity that arises with its wider scope of services in the years to come,” he said.

He said DOS and Federal Hardware, via the JV, intend to leverage on each other’s capabilities and expertise in tendering for projects which include floating production systems in greenfield development; transportation and installation services; well abandonment and field decommissioning services; and downhole and well workover services.

Destini group managing director Datuk Rozabil Abdul Rahman said securing a financially sound and experienced joint venture partner was a milestone. “This new JV will pave the way to new opportunities for our oil and gas division with the expansion of our scope of service.”

He said with DOS will be able to leverage on Federal International’s overseas network to expand its services.