Enra Group cautious on O&G venture as Petronas warns of cashflow constraints

KUALA LUMPUR: Enra Group Bhd sees the current oil price rout as a barrier for it to transform into an oil and gas firm, especially when the state-owned oil major Petroliam Nasional Bhd's (Petronas) is dragged into a cash flow-constraint position.
Taking cue from lower capital expenditure (capex) by Petronas, Enra president and CEO Datuk Mazlin Md Junid said the company needs to be more cautious and to get more clarity about the industry outlook before it acquires any oil and gas assets.
"We believe in the next six to 12 months, there will be major rationalisation among oil and gas services companies," he opined.
Despite that, he said plans for the venture into the oil and gas industry has not been put on hold as he opined there could still be acquisition opportunities.
Enra is primarily looking at the maintenance and inspection segment within the oil and gas industry.