Malaysia-listed offshore services provider Tanjung Offshore has signed a collaboration agreement with China-based Yantai Jereh Petroleum to provide oil and gas services in Malaysia.
Under the agreement, both parties will grant each other priority to pursue and secure opportunities in Malaysia. Jereh will then be in charge of drilling, completion, well services equipment, and gas compressor packages.
Tanjung Offshore will be involved in the investment of energy resources, including the oil and gas portfolio. The investment will include the provision of integrated services for the oil and gas and related industries and the provision of engineering equipment, spare parts, and maintenance.
Tanjung Offshore, licensed by national oil company Petronas, and entered into sales of goods and services agreements with Malaysian oil and gas companies.
According to Tanjung Offshore’s filing to Bursa Malaysia, the agreement is not expected to have any material financial effects on net assets per share, gearing, share capital, and substantial shareholders’ shareholdings in the company for the financial year ending 31 December 2015.
Tanjung Offshore previously posted net profits of MYR1.7 million (USD400,000) for the second quarter of 2015, reversing a loss of MYR1.2 million in the same quarter last year. The company had disposed of its maintenance services division last year, so its revenue now relies on its engineering equipment packages and products and services divisions.