KUALA LUMPUR (Sept 21): Property investment company Enra Group Bhd has inked a heads of agreement (HoA) to set up a special purpose vehicle (SPV) with AWT International (Asia) Sdn Bhd to collaborate on oil and gas (O&G) projects.

In a filing with Bursa Malaysia, Enra said the SPV will collaborate on projects involving wells, platforms and field abandonment or decommissioning projects with direct or indirect subsidiaries of Petroliam Nasional Bhd (Petronas) as well as other O&G operators.

It will also provide project management, technical engineering services and other technical support as well as assets, machine, equipment and related services for projects of interest to both Enra and AWT International.  

Enra, which was formerly known as Perduren Corp Bhd, will hold a 51% stake in the vehicle, while AWT International will hold the remaining 49%.

Enra said both parties seek to collaborate to optimise their combined strengths to seek, explore and secure projects in the Malaysian O&G industry.  

AWT International will provide operational and technical experience in abandonment and decommissioning projects for the O&G industries in Southeast Asia, including Malaysia and Australia, the filing read.

Enra will contribute resources, qualifications, abilities, and other capabilities as well as its business network, contacts or relationships, particularly access to information or otherwise, it added.

Enra said both parties have proposed to enter into a shareholders agreement by end of November (60 days from the signing of the HoA) to formally set out the detailed terms of the proposed joint effort.

“If the parties fail to finalise the shareholders agreement on or before the cut-off date, either party may terminate the HoA by giving a seven days’ written notice to the other party,” the filing read.

The SPV shall be wound up if it does not commence business or upon commencement, is not profitable within three years from the date of the signed shareholders agreement, or other period mutually agreed by both parties.

Enra’s share price, which spiked to RM2.85 in June, closed 7 sen or 3.55% lower at RM1.90 today, with a market capitalisation of RM265.79 million.

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