KUALA LUMPUR (June 9): Dagang NeXchange Bhd (KL:DNEX) is taking a 20% equity stake in an oil and gas (O&G) exploration joint venture formed with Terengganu Inc’s energy arm TI Petroleum Sdn Bhd.

In a statement, DNeX announced that its subsidiary Ping Petroleum Ltd will hold the equity interest in the joint venture called TI Exploration & Production Sdn Bhd (TI EP).

However, DNEX did not reveal the investment value.

TI Petroleum is the energy arm of Terengganu Inc Sdn Bhd, while TI EP is a joint venture company set up by TI Petroleum and Ping Petroleum to pursue O&G exploration and production investments.

In a statement, DNeX said the acquisition expands its energy business and aligns with its broader strategy to strengthen its energy portfolio and deepen its presence in regional energy opportunities.

The deal also provides Ping Petroleum, which is already operating in Terengganu through the redevelopment of the Abu Cluster, with a pathway to further participate in the country’s upstream energy sector alongside a partner familiar with the local regulatory framework, supply chain and long-term state energy priorities.

The company added that the partnership is expected to unlock synergies through Terengganu Inc’s role as the state investment holding company, which manages commercial and investment assets on behalf of the state government.

“By combining our technical capabilities with TI EP’s strategic positioning, we are not only unlocking immediate opportunities but also establishing a strong foundation for future growth in Malaysia’s upstream sector,” said DNeX chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir.

Shares of DNex increased 2.5 sen or 8.2% to close at 33 sen on Tuesday, giving it a market capitalisation of RM1.15 billion.