KUALA LUMPUR (March 25): Oil and gas services provider Handal Energy Bhd (KL:HANDAL) has teamed up with a private company, BumiRaya Petroleum Sdn Bhd, to tap into the local and regional offshore crane services market.

"This collaboration aims to combine Handal’s financial strength and technological foundation as a listed company with BumiRaya’s flexibility in professional engineering services and market expansion," said Handal in a statement on Wednesday.

Handal will hold a 60% stake in the joint venture company and BumiRaya the remaining 40%.

Handal said there are approximately 420 offshore cranes in the region at present, each requiring maintenance services, indicating a very broad market prospect.

Looking ahead, with oil prices expected to remain high in the coming years, Handal and BumiRaya are optimistic about order growth.

Both parties believe that the joint venture will more effectively integrate resources, providing a one-stop solution from crane upgrades (such as hydraulic and electrical system updates) to crane leasing, fully capitalising on the golden opportunities presented by the oil and gas industry's recovery.

BumiRaya managing director Taha Sheikh Mohammad said the company recently completed a RM1 million crane project from Petra Energy Bhd (KL:PENERGY) and currently has 63 similar potential contracts on hand, which it plans to transfer to the joint venture for execution.

Established in 2012, BumiRaya holds 12 Petronas operating licences. The company focuses on providing specialised technical services, including project management for offshore pedestal cranes and lifting equipment.

BumiRaya is also the regional agent for Ulo Systems, Hutchinson Techlam SAS, and Globaltech Systems Engineering Pte Ltd (a subsidiary of Singapore-listed KS Energy Services Ltd).

Handal, on its part, possesses extensive experience in the offshore crane industry, with businesses encompassing crane manufacturing, refurbishment, repair, leasing, and engineering, procurement, and construction (EPC) services.

Currently, Handal owns 15 cranes ready for immediate operation, supporting various offshore platforms.

On Wednesday, Handal’s share price closed half a sen or 14.29% lower at three sen, giving the group a market capitalisation of RM14 million.