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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.

Vincent Wee, Hong Kong and South East Asia Correspondent

June 4, 2015

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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.

About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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