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Wah Seong bidding for over $1bn in projects this year

Wah Seong bidding for over $1bn in projects this year
Malaysian oil and gas (O&G) services provider Wah Seong Corp is tendering for MYR4bn ($1.08bn) to MYR5bn worth of projects this year, local reports quoted group ceo Chan Cheu Leong as saying.

He added that projects from the O&G segment will form the bulk of the tenders, while renewable energy projects will make up the rest.

“The value of the tendered projects, located in the North Sea, Gulf of Mexico, and North Africa, is more or less the same as that of 2014.

“Although in the oil industry there is a significant cutback on capital expenditure, the impact on the group’s business so far has been minimal. This is because the demand for gas is still strong and the group has the capability to pursue new oil business opportunities in different parts of the globe,” he said.

Chan said the group’s oil and gas division has MYR1.2bn worth of projects in its orderbook.

“In the renewable energy and industrial trading and services divisions, there are respectively a further MYR280.5m and MYR209.2m worth of projects,” Chan said.

Chan said the price of oil, now hovering between $61 and $66 per barrel, is expected to cross the $70 mark early next year.

“The low oil prices and volatile markets are likely to present challenges to the group. However, the fundamentals of the oil and gas industry remain intact in the long term,” Chan said.

He added that the renewable energy division was expected to remain resilient and the group was optimistic that the segment would become a major contributor to the group in the near future.

“We will innovate, increase efficiency and implement prudent cost management to weather the current operating environment,” he said.

TAGS: Offshore