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Ramunia buying fabrication yard for RM83.8m from Oilcorp subsidiary

posted 25 Jan 2011, 04:28 by Zam Mlk

KUALA LUMPUR: OILCORP BHD [] has agreed to accept an offer from RAMUNIA HOLDINGS BHD [] to acquire the Pulau Indah integrated fabrication yard for RM83.8 million from the former’s subsidiary Oilfab Sdn Bhd.

OilCorp’s 51%-owned Oilfab had on Tuesday, Jan 25 accepted an offer made by Ramunia to acquire the yard, the moveable and immoveable assets.

Ramunia said the proposed acquisition will enable it to access to a fabrication yard equipped with ready infrastructure which will allow it to commence operations immediately if need be.

“Notwithstanding the disposal of the Teluk Ramunia fabrication yard which was completed in April 2010,

Ramunia intends to continue its decade long history of fabricating offshore structures for the oil and gas industry at a strategically located and proven location,” it said.

Ramunia said the proposed acquisition would enable it to take part in fabrication contracts under the Economic Transformation Programme (ETP) for the oil and gas sector.

“The proposed acquisition will bode well for Ramunia in its effort to maintain its position as a key player in this closed market segment where current barrier to entry is high,” it said.