(Updated)

Bintai Kinden partners with PT Raintech Indo Energi to market O&G equipment in Indonesia

Bintai Kinden partners with PT Raintech Indo Energi to market O&G equipment in Indonesia
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KUALA LUMPUR (Aug 10): Multidisciplinary building and industrial service engineering outfit Bintai Kinden Corp Bhd has signed a collaboration agreement with PT Raintech Indo Energi (PTRIE) for PTRIE to market and promote flanges, fittings, pipes, and other oil and gas (O&G) equipment in Indonesia on behalf of its unit Bintai Energy Sdn Bhd.

In a bourse filing on Wednesday (Aug 10), Bintai Kinden said Bintai Energy will collaborate with PTRIE to promote business opportunities, and provide the necessary technical and competitive price support for the products to be represented by PTRIE.

PTRIE will be responsible for the promotion of the products within Indonesia, and to advise Bintai Energy on market-related information on these products.

The agreement is effective from Wednesday and valid for three years, but either party may terminate the agreement for any reason by giving one month's notice in writing to the other.

Bintai Kinden owns a 51% stake in Bintai Energy through Kejuruteraan Bintai Kindenko Sdn Bhd, a mechanical and electrical engineering services specialist.

Bintai Energy is a special purpose vehicle appointed to be the authorised distributor of Bintai Kinden's flanges, fittings, pipes, and other O&G products locally and internationally.

Meanwhile, PTRIE provides integrated solutions with a focus on the upstream, midstream and downstream segments of the O&G industry, as well as the marine, industrial, aviation, water and wastewater, food and beverage, and healthcare industries.

“The collaboration with PTRIE opens up vast opportunities for us, as Indonesia is Southeast Asia’s largest economy with GDP (gross domestic product) of US$1.19 trillion (RM5.3 trillion) as of 2021, and a population of 270 million,” Bintai Kinden executive director Azri Azerai said, citing data from the World Bank and ASEAN.

“The O&G industry is an important contributor to the economy and a key growth driver. We look forward to working together with PTRIE, whose founders are renowned experts in Indonesia’s O&G industry, to seek opportunities that are beneficial to us both, as Indonesia has set a target to ramp up crude oil and condensate production to 705,000 barrels a day,” Azri said in a statement.

Previously on July 28, Petro Flanges & Fittings Sdn Bhd awarded Bintai Energy additional subcontracts to supply high-grade carbon steel or stainless steel piping, valves and piping accessories, with a value of approximately RM4.43 million.  

Bintai Kinden said on Wednesday that Bintai Energy had to date clinched approximately RM9 million in subcontracts.

At the time of writing, shares in Bintai Kinden were up half a sen or 5.26% at 10 sen, valuing the company at RM81.5 million.