KUALA LUMPUR (June 10): Engineering solutions provider Destini Bhd (KL:DESTINI) has secured a contract from Hibiscus Petroleum Bhd (KL:HIBISCS) to provide tubular handling equipment and services to support Hibiscus’s field operations in the PM3 Commercial Arrangement Area (PM3-CAA) field, which is located in the Malaysia-Vietnam offshore waters.

The three-year contract that started on April 24, 2025 was awarded to Destini Oil Services Sdn Bhd by Hibiscus Oil & Gas Malaysia Ltd (HML), Destini said in a filing with Bursa Malaysia.

The value of the contract will be based on work orders issued by Hibiscus Oil & Gas (PM3) Ltd throughout the contract period. Both HML and Hibiscus Oil & Gas Malaysia (PM3) are indirect wholly owned subsidiaries of Hibiscus Petroleum.

The field is a part of a joint exploration and development agreement between Malaysia and Vietnam. Hibiscus Petroleum has a 35% interest in the PM3 CAA field, which is operated by HML. Petronas Carigali Sdn Bhd and PetroVietnam Exploration Production Corporation Ltd are the non-operating partners.

In April this year, HML and Hibiscus Oil & Gas Malaysia (PM3) signed a key principles agreement with Petronas (via Malaysia Petroleum Management) and the Vietnam Oil and Gas Group to extend the PM3-CAA production-sharing contract and the Upstream Gas Sales Agreement (UGSA) from December 2027 to December 2047.

“This contract enhances our upstream portfolio and solidifies our strategic partnership with Hibiscus,” said Destini executive director Ismail Mustaffa in a statement, adding the latest win will immediately contribute to the group’s earnings while reaffirming its commitment to meeting Malaysia’s local content goals.

“As Malaysia moves towards its production target of two million barrels per day, we remain steadfast in supporting energy sector players with our proven expertise, especially as demand for Oil Country Tubular Goods (OCTG) is expected to remain strong over the next three years,” he added.

Destini shares closed one sen or 3% higher at 34 sen on Tuesday, giving the group a market capitalisation of RM186.6 million.