Enra forms JV company with Australia’s Icon

PETALING JAYA: Enra Group Bhd’s indirect wholly owned subsidiary Enra Oil & Gas Services Sdn Bhd (EOGS) and Icon Oilfield Solutions Sdn Bhd, a wholly owned subsidiary of Icon Engineering Pty Ltd of Australia have entered into a shareholders’ agreement to jointly establish a company to provide low-cost solutions to the upstream oil and gas industry within and outside Malaysia.
EOGS’ principal activities are importing, exporting, leasing, trading, manufacturing, wholesaling, distributing, retailing, agency, stocking and dealership in all kinds of industrial products, construction equipment and machineries, marine vessels, process and storage facilities, oil and gas product handling equipment and the provision of associated services for relevant industries.
The Icon group operates as an oilfield service company with a strong combination of engineering and contracting capabilities. The group works primarily in the upstream offshore oil and gas sector both in support of drilling operations and in the area of offshore facilities design and construction.
The intended principal activity of the JV company is to provide the products and/or services for well head platform and light weight structure engineering works in respect of offshore novel facilities.
EOGS will have a 70% stake in the JV company, while Icon will own the remaining 30%.
“The proposed JV is in line with the expansion plan of Enra to leverage on the opportunities in niche and/or cost effective solutions for the oil and gas industry. The intended activities of the JV company are expected to contribute positively to the profitability and growth of the company in the future,” Enra said in a stock exchange filing yesterday.
EOGS will fund its initial investment in the JV company through internally generated funds.