PETALING JAYA: Reservoir Link Energy Bhd
(RLEB) is acquiring 545,044 shares (or a 30%) stake in Propel Maxflo Sdn Bhd from Propel Oilfield Services Sdn Bhd for RM7.39mil.
In a filing with Bursa Malaysia, RLEB said Propel Maxflo is principally involved in providing products and services for exploration, drilling and well intervention, enhanced oil recovery/improved oil recovery and production technologies specifically for offshore and onshore oil and gas, refining, chemical and petrochemical.
Together with Propel Maxflo RLEB said it would be able to command a larger market share in Malaysia’s oil and gas services industry, positioning it as a more competitive and resilient player in the sector.
“Propel Maxflo’s established relationships with clients across Malaysia, South-East Asia, Middle East and Africa provide access to new contracts and project opportunities.”
RLEB added that the acquisition is in alignment with PETRONAS’ vision for oil and gas industry consolidation.
“PETRONAS has long advocated for the consolidation of the oil and gas industry to create a more resilient, efficient, and competitive ecosystem.
“This aspiration reflects the need to address challenges such as market volatility, escalating costs and the fragmentation of service providers within the industry.”
