Friday 01 Mar 2024
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KUALA LUMPUR (Oct 30): Dagang NeXchange Bhd’s (DNeX) 90%-owned subsidiary Ping Petroleum Sdn Bhd has secured a contract from Petroliam Nasional Bhd (Petronas) in relation to the production of petroleum and abandonment of petroleum facilities.

In a bourse filing on Monday, DNeX said the abandonment (decommissioning) work will cover petroleum facilities located in the Abu Cluster ― about 250km off the east coast of Peninsular Malaysia.

“The contract shall become effective commencing on the effective date and will remain valid for: a duration of 10 years; or until the execution of the abandonment work as per the abandonment plan,” it added.

DNeX’s filing did not disclose a value on the contract it secured from the national oil and gas giant.

According to DNeX, the project will allow the group to diversify its energy business away from a single asset risk, geographically diversify and also operate in a lower-cost environment.

“Furthermore, the group will be able to continue to grow its business organically and continue with its expansion plans to offer its services to new markets,” it added.

At the noon break, shares in DNeX stood at 43 sen, giving the group a market capitalisation of RM1.34 billion. 

Edited ByIsabelle Francis
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