KUALA LUMPUR (Sept 27): Orkim Sdn Bhd, mostly held by state-owned private equity firm Ekuiti Nasional Bhd, secured a long-term contract for the charter of two vessels to transport petroleum products across Malaysia.

The two vessels will transport oil products for Shell’s downstream fuels business across Peninsular Malaysia and East Malaysia, Shell Malaysia said in a statement. The contract value and duration was not disclosed.

The two new-builds vessels will play a “crucial role” in transporting oil products for Shell Malaysia while also address the “growing requirements and compliance needs,” Shell Malaysia said.

The agreement was signed between Shairan Huzani Husain, managing director of Shell Malaysia Trading Sdn Bhd and Shell Timur Sdn Bhd, and Orkim chief executive officer Cheah Sin Bi.

“We are excited to work with Orkim and believe this collaboration will encourage greater involvement from local industry players and foster new initiatives to further develop local capabilities,” said Shairan Huzani.

Orkim is one of Malaysia’s largest domestic vessel owners, operating 17 petroleum product tankers and two liquefied petroleum gas tankers. Ekuiti Nasional, also known as Ekuinas, holds a 95.5% stake in the company.