Local media reported that under the deal, Priceworth and Semaring Enterprise will be going after Petronas contracts and its production sharing contract (PSC) partners, with its strategic location in Sabah near the offshore fields there.
Semaring Enterprise is already a licensed and registered contractor and supplier for Petronas and its partners, while Priceworth, which is actually a timber company, brings yard facilities in Sabah to the table. No figures were disclosed.
The deal is being done through its Maxland Dockyard & Engineering unit. Priceworth operates a shipyard in Seguntor, Sandakan, via Maxland Dockyard (formerly Maxland Shipyard). Facilities include a dockyard and engineering facility to fabricate and service vessels and barges. However, the group is relatively new at this, having ventured into the shipyard business only in 2012 and starting by building new vessels and performing maintenance services for external clients, apart from maintaining its own fleet of vessels for timber delivery.
“Priceworth is undertaking this proposed JV to mitigate any over-dependence on the core timber business, and seek alternate income streams. The outlook on the O&G industry remains positive, which makes this proposed JV a good strategy to use our existing facilities and infrastructure,” said managing director Andrew Lim.
“Priceworth’s shipyard is strategically located on the east coast of Sabah and will be the only one serving this area, providing cost savings in terms of travel distance. Other nearest shipyards are in Labuan or Sarawak,” he added.
For its part Semariang director Dawat Gukang said: “Semaring Enterprise has had a long track record in this sector since 1994. We have delivered over MYR800m ($248m) in O&G works in the past four years.
“We are pleased that Maxland Dockyard will become our technical and advisory partner in this sector,” he added.
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