KUALA LUMPUR (Nov 25): Ahmad Zaki Resources Bhd (AZRB) announced that it has acquired a 51% equity interest in Matrix Reservoir Sdn Bhd (MRSB) for RM55 million, making the latter its subsidiary.

MRSB is the owner of TB Supply Base Sdn Bhd (TBSB), which is the operator of Tok Bali Supply Base in Kelantan Darul Naim, AZRB's statement to Bursa Malaysia today showed.

Tok Bali Supply Base offers integrated logistics services to production sharing contractors (PSC) and oil and gas service companies operating in the North Malay Basin, the Malaysia-Thailand Joint Development Area (MTJDA) and the Commercial Arrangement Area (CAA) between Malaysia and Vietnam.

"We have been in the business of providing bunkering services at an onshore supply base for over 20 years. We have experienced first-hand the opportunities and potential of a supply base, particularly one that serves the North Malay Basin, MTJDA and CAA. As such, our participation in MRSB represents a natural and strategic expansion of AZRB's oil and gas business," said AZRB group managing director Datuk Wan Zakariah Wan Muda.

The acquisition will be funded through bank borrowings and/or internally generated funds and the transfer of shares in AZRB's wholly-owned Astral Far East Sdn Bhd to MRSB to offset RM22.5 million from the total consideration.

Tok Bali Supply Base currently offers bunkering services for fuel and potable water, mechanical handling and equipment, bonded warehouse, customs and immigration and office space.

It is operationally ready with 500 metres of wharf and berthing space for five offshore support vessels.

Over the next five years, AZRB said it plans to embark on a capital expenditure programme amounting to approximately RM100 million for the Tok Bali Supply Base.

This includes equipping the supply base with all the critical equipment and services to meet the requirements of the PSC and service companies.

AZRB shares closed unchanged at 65 sen today, giving it a market capitalisation of RM313.3 million.

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