Straits Energy Resources subsidiary bags diesel supply contract from Vietnam's state oil company

KUALA LUMPUR: Straits Energy Resources Bhd's 70%-owned subsidiary Tumpuan Megah Development Sdn Bhd has signed a call-off contract with PetroVietnam Technical Services Corporation for the supply of diesel for PM3-CAA field.

In a bourse filing, it said the proposed contract is for a period of Dec 6, 2021. to June 4, 2025.

It added that there is no specific value assigned to the contract as the supply of diesel will on a call basis throughtout the duration of the contract.

It said the PM3-CAA project involves offshore fields located throughout a 2008km sq km in the overlapping zone between Malaysia and Vietnam.

"The Contract is not expected to have any material effect on the net assets of Straits and its Group of Companies for the financial year ending (“FYE”) 31 December 2021.

"However, it is expected to have positive contribution to the Group’s earnings for the FYE Dec 31, 2021," said Straits Energy Resources.