Tuesday 14 May 2024
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KUALA LUMPUR (Feb 8): OceanMight Sdn Bhd, a subsidiary of KKB Engineering Bhd, has entered into a Memorandum of Understanding with Samsung Engineering Co Ltd to collaborate on potential global projects in the oil and gas process module and structure sectors.

According to a bourse filing on Thursday, the Sarawak-based steel fabrication firm’s 66.31%-owned unit OceanMight Sdn Bhd along with Samsung Engineering may cooperate in the tendering for projects which may involve specialised scope of work and supply.

“The MOU shall be valid for two years subject to the terms of the MOU,” it said without elaborating on details of the MOU.

According to KKB’s latest annual report, OceanMight is a Petronas-licensed fabrication yard for offshore facilities construction.

KKB directly owns a 60.31% stake in OceanMight, followed by another 5.5% effective stake by virtue of its 40%-owned unit Edisi Optima Sdn Bhd’s 13.75% stake in the company. The remaining 25.44% in OceanMight is owned by Annexe Fair Sdn Bhd.

Notably, this is not the first time OceanMight has been in talks with Samsung Engineering over a potential collaboration.

Back in Oct 2021, the pair inked an MOU to collaborate in the bidding of tenders for unspecified projects worldwide.

While no follow-ups were disclosed on the 2021 MOU, OceanMight in April 2023 received a RM111.6 million purchase order from Samsung Engineering (M) Sdn Bhd for the module fabrication and supply of steel structures for Malaysia Shell R&M Onshore Gas Plant project in Bintulu, Sarawak.

Shares in KKB ended two sen or 1.16% higher at RM1.74, valuing the group at RM502.38 million.

Edited ByIsabelle Francis
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