Enra unit sets up JV company with ICON Oilfield

PETALING JAYA: Enra Group Bhd’s unit has entered into a shareholder’s agreement to jointly set up a company and provide low-cost solutions to the upstream oil and gas (O&G) industry within and outside Malaysia.

In a filing with Bursa Malaysia yesterday, Enra said that its indirect wholly-owned subsidiary Enra Oil & Gas Services Sdn Bhd and ICON Oilfield Solutions Sdn Bhd, a wholly-owned subsidiary of ICON Engineering Pty Ltd of Australia, had entered into a shareholders’ agreement to set up a joint venture (JV) company to provide the O&G solutions.

“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,” said Enra.

Enra said the JV company would have an authorised share capital of RM4mil, adding that Enra Oil & Gas Services would invest in the JV company through internally-generated funds.

“The proposed JV is not expected to have any effect on the issued and paid-up share capital of the company and its subsidiaries since the consideration for the investment in the JV company will be satisfied fully in cash,” said Enra.