KUALA LUMPUR (Sept 11): Kejuruteraan Samudra Timur Bhd (KSTB) is expanding its Myanmar operations by signing a memorandum of association with a local company there.

KSTB’s filing with Bursa Malaysia today, said its wholly-owned unit Samudra Timur Sdn Bhd (STSB) had on Aug 26, signed the memorandum of association with Bholat General Services Co Ltd to form Bholat Samudra Timur Oil Services Company Ltd (BSTOSCL), where STSB has a 49% stake.

KSTB said the principal activities of the newly-formed company are to provide inspection services for oilfield services, provide maintenance services for easing tubing, provide pressure-testing services; and agency business, technical consultants, business consultants, management consultants and advisory services.

Additionally, BSTOSCL will also be in the business of conducting feasibility studies on new projects, project formulation, appraisal and evaluation, said KSTB.

According to KSTB’s latest annual report for the financial year ended June 30, 2013 (FY13), it was awarded two contracts to provide tubular handling services for upstream operators operating in Myanmar, for three years beginning 2014.

However, the company subsequently sold its tubular handling services division, Samudra Oil Services Sdn Bhd, to Destini Bhd. As the segment made up the majority of its revenue, KTSB was rendered a PN17 company beginning April of this year.

KTSB's share price closed 1 sen higher at 51 sen today.