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Tanjung Offshore to diversify into brownfield development with new tie-up

Tanjung Offshore to diversify into brownfield development with new tie-up
Leveraging on its recent tie-up with China’s largest privately-held listed oil and gas (O&G) company, Jereh Petroleum Equipment, Tanjung Offshore is looking to venture into brownfield development and shipping services, local reports said.

It will tap Jereh’s expertise in brownfield services for projects in peninsula Malaysia and Sarawak. Tanjung Offshore ceo Muhammad Sabri Abd Ghani said: “With the slowdown in the industry now, capital and operating expenditure cuts are expected and these have affected us somewhat."

He added that Tanjung Offshore has continued to bid for new projects worth about MYR500m ($117.7m) locally and internationally, but admitted that most greenfield development projects have now been deferred. “This is the start of other ventures we will go into. What we plan to do is to be ready when the time comes for us to go back in.” Muhammad Sabri said.

He said Jereh’s technology would improve operating efficiency, lower costs and implement technology enhancement. “Jereh will contribute positively to the technology transfer. This is an example of a win-win partnership as the oil and gas industry consolidates in challenging economic times.”