KUALA LUMPUR (May 12): Tanjung Offshore Bhd's subsidiary Gas Generator (M) Sdn Bhd (GGM) has won a contract from PTS Resources Sdn Bhd worth RM17.86 million to supply and commission battery systems.

Tanjung Offshore said in a statement today the three-year contract to supply, deliver, install, test, and commission batteries including related engineering services and accessories to PTS Resources is a "good balance" to the group's revenue against the backdrop of challenging oil and gas environment.

"We are honoured by the award which marks our group's first venture into the battery business," said Tanjung Offshore group chief executive officer Rahmandin Md Shamsudin.

"Tanjung Offshore is committed to streamlining processes, reducing costs and finding efficiencies in delivering our services to PTS Resources. We strive to provide convenient, low maintenance solutions to our customers.

"In light of market conditions in the oil and gas sector which forms Tanjung Offshore's core business, our foray into the battery industry is very timely, providing a good balance to the group's revenue," he said.

The valve-regulated lead acid battery system, or commonly known as a sealed battery or maintenance free battery, is a type of lead acid rechargeable battery.

It ensures uninterruptible power and emergency back-up supply, services alarm and security systems for telecommunications central stations as well as network communications hub.

PTS Resources is primarily involved in supplying components and parts for process plant machinery in Malaysia.

GGM, the second largest subsidiary of Tanjung Offshore, is principally involved in the manufacturing and marketing of inert gas generators in both the industrial as well as the oil and gas market.

GGM is renowned for its in-house engineering capacity, experienced designers, engineers and comprehensive workshop. It also undertakes complex engineering integration packages on designing, financing, building, operating, and maintaining models.

The company also offers the capability to design and manufacture nitrogen gas generators for on-site gas production facilities on 'Build, Operate and Transfer' and 'Build, Operate and Own' contracts to the related industries.

GGM has expanded its operations throughout the ASEAN region with an active presence in Malaysia, Australia, Thailand, Indonesia and the Philippines.

Tanjung Offshore closed 0.5 sen or 1.61% higher at 31.5 sen for a market capitalisation of RM381.54 million.