KUALA LUMPUR (June 26): Enproserve Group Bhd, en route to the Ace Market, anticipates a surge in demand for its services over the coming years, especially at the Pengerang Integrated Complex in Johor.
The capital raised from its initial public offering (IPO) will equip Enproserve to tap the rising requirements for plant maintenance and turnaround, managing director Azman Yusof said at a press conference following Enproserve’s IPO prospectus launch on Thursday.
“With this investment in capital expenditure, we will be ready,” he said. “This includes preparations for Malaysia’s largest-ever plant turnaround for the Pengerang Integrated Complex.”
The Pengerang complex has been offline since February due to technical issues at the crude oil refinery and naphtha cracker, operated by a joint venture between national oil companies Petroliam Nasional Bhd (Petronas) and Saudi Aramco.
The latest trouble resulted in the lack of feedstock for the plants, which produce gasoline, diesel and other petrochemical products.
Enproserve is currently the main contractor for turnaround works at Pengerang, specifically serving as the static main mechanical contractor, Azman said. The company was awarded a long-term contract for the Pengerang turnaround project in 2019, which spans a period of ten years.
Azman highlighted that the site — which only began operations at the end of 2023 — has yet to undergo its first full turnaround, presenting substantial upcoming opportunities for Enproserve’s operations.
Turnaround activity in the oil-and-gas industry typically involves shutting down refineries’ operations for maintenance or upgrades. Turnarounds are typically planned extensively due to the cost involved and potential revenue loss.
Enproserve is also acquiring more heavy-lifting equipment, and building a new crane-depot facility, which “we trust will boost our operational efficiency and profitability,” Azman added.