KUALA LUMPUR (June 29): Bintai Kinden Corporation Bhd is partnering with Marafie Industrial Co to supply piping materials to oil and gas (O&G) related companies in Saudi Arabia.

In a statement to the bourse on Wednesday (June 29), Bintai Kinden said its subsidiary Bintai Energy Sdn Bhd has entered into a marketing and distribution agreement with Saudi Arabia-based Marafie.

Marafie is a company providing total solutions to complicated fabrication projects, from the sales and bidding of the project, to construction engineering, scheduling, quality assurance, logistics, and follow-up with  customers.

Bintai Kinden said the Marafie group has established fabrication facilities and offices and regional sales offices in Saudi Arabia.

The company said that under the agreement, Marafie will act as a representative of Bintai Energy to engage in O&G development in the region of Saudi Arabia.

Bintai Energy is a 51:49 joint venture between Bintai Kinden unit Kejuruteraan Bintai Kindenko Sdn Bhd and Petro Flanges & Fittings Sdn Bhd (PFF).

Bintai Energy is a special purpose vehicle identified to supply materials and equipment to the local and international O&G industry including the Middle East via the distributorship channel of PFF.

Bintai Kinden executive director Azri Azerai said the company foresees the demand for piping materials and equipment related to O&G industry to escalate in tandem with the recovery in the global O&G market.

“Saudi Arabia is an oil rich country. It possesses around 17% of the world's proven petroleum reserves.

“We hope to tap on our local partner network and win more O&G contracts in the region,” he said.

Meanwhile, Marafie chairman Abdullah Bayounis said the firm was optimistic with the collaboration with Bintai Energy.

“The company is currently working to get a few contracts in Saudi Arabia,” he said.

At the midday break on Wednesday, Bintai Kinden was trading at 8.5 sen, valuing it at RM72.52 million.