CORROSION-CONTROL products supplier Perisai Petroleum Teknologi Bhd has been very busy since being listed on the Mesdaq market in early July.
In less than six months, the group has managed to expand its portfolio of products and solutions via various joint ventures (JVs) and acquisitions.
First was a proposed JV with SIF Universal Sdn Bhd (SIFU) to undertake research and development (R&D) for the development and application of fibre-optic sensors.
Next was the proposal to acquire a 51% stake in Nottingham AI Sdn Bhd and an agreement with the University of Nottingham Malaysia to engage in joint R&D to produce intelligent electronic systems for the oil and gas industry.
In September, Perisai proposed to acquire a 51% stake in Bio-X Technologies Sdn Bhd, which supplies bio-remediation products and equipment and also provides services for removing harmful and hazardous oil contaminants and transforming them into environmentally friendly products.
At the same time, the group also proposed to acquire 100% of Merit Composites Sdn Bhd, which is primarily involved in the structural strengthening of sub-sea structures and composite protective circular mouldings.
Subsequently came the proposed JV with Morstrong Industries Sdn Bhd to undertake the manufacture and marketing of specialised protective underwater and surface coating for corrosion control purposes in the oil and gas industry.
The latest acquisition is of a 55% stake in Allied Marine and Equipment Sdn Bhd to take advantage of the current and long-term demand for diving and inspection support in the oil and gas industry in the country and region.
Executive director Tengku Daud Shaifuddin said the tie-ups and acquisitions would consolidate the group's position as the number one value-creating technology provider for the oil and gas industry for the Asean region, in line with its vision statement.
“It also follows Perisai's overall strategy of being a fully integrated one-stop centre by providing the full range of services and products from inspection, design, fabrication and installation.
“We used to be able to offer our products and solutions only in the operations and maintenance stage of the oil and gas industry, but now we are able to offer them in the development, production and de-commissioning phases as well,” he told StarBiz.
Tengku Daud said the group's products in the pipeline like the fibre-optic sensors, intelligent closed-circuit television system and a system to detect false shutdowns on the platforms were targeted to be commercialised by the middle of next year.
“Our emphasis now is on technology. Although our main market is the oil and gas industry, the new products can be used for other industries as well – the number of applications is huge,” he said.
Currently, the group's products and solutions have been provided predominantly to the domestic oil and gas industry.
For the year ended Dec 31, 2003, about 87.3% of revenue was contributed by its Malaysian oil and gas operations while 12.2% was from the Brunei, Thailand and Indonesia offshore oil and gas operations.
Tengku Daud said Perisai expected 75% of its revenue to come from the overseas markets by 2010.
“There is huge potential in the overseas markets. Brunei alone has over 200 platforms while the oil and gas industry in Indonesia is three times as big as ours.
“What we need to do is replicate what we are doing here in other countries. We have the patents for our products and solutions as well as the expertise,” he said.
Tengku Daud said the group would be organising a roadshow and preparing a team to go to Indonesia by year-end to promote its products and solutions.
Besides Brunei, Indonesia and Thailand, Perisai will be looking at other countries in the South-East Asian region as well as the Middle East.
“We will also be able to tag along with Petroliam Nasional Bhd (Petronas) to countries it is in or will be penetrating,” he said.
Tengku Daud sees good prospects for Perisai in the years to come, boosted by its expanded portfolio of products and solutions as well as the regionalisation of the group's business.
“We have our own niche areas. We are not in the industry to compete with the big boys.
“In fact, we are very excited about our new products which should be well received in the market.
“In addition, the margins in the oil and gas industry is better due to the emphasis on safety and high quality products,” he said.
Perisai has over 40 patents worldwide and has a technical collaboration with Petronas Research and Scientific Services Sdn Bhd, a subsidiary of Petronas involved in R&D in the oil and gas industry.
The group was awarded Petronas vendor status in May 2000. That essentially gave it a five-year monopoly to supply and install certain corrosion control contracts and solutions to Petronas and its subsidiaries offshore and onshore pipelines, refineries and petrochemical plants as well as those of Petronas' contractors under production sharing contracts such as Carigali, ExxonMobil, Shell and Nippon Oil.
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