T7 Global to raise Rm42mil

PETALING JAYA: Oil and gas service provider T7 Global Bhd has proposed to raise up to Rm42mil via a private placement to partially fund its three ongoing projects.

The firm said it plans to issue up to 117 million new shares or 20% of the total issued shares to a third-party investor, or investors.

It said the proceeds would be used as working capital for its contract from Carigali Hess Operating Company Sdn Bhd to provide onshore fabrication, offshore hookup and commissioning for infill flowlines and a contract to supply systems and equipment.

“These two contracts have a provision value of Rm140mil and it was announced in May 2020,” it said in a filing with Bursa Malaysia.

The remaining of the proceeds from the private placement is to part-finance the engineering, procurement, construction, installation and commissioning (EPCIC) of a mobile offshore production unit (MOPU).

The MOPU is under a 10-year contract from Petronas Carigali Sdn Bhd for the Bayan Redevelopment Project Gas Phase 2, which was announced in February.

T7 Global chairman Datuk Seri Nik Norzrul Thani Nik Hassan Thani said the fund raising via the placement was necessary due to the substantial capital required by end of this year.

As for the Bayan MOPU project, he said he company was now into the phase of detailed engineering and procurement.

“The time charter period of the agreement is 10 years after the completion of EPCIC of the MOPU which will provide us with a long-term steady income, ” he said.