Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on July 18, 2019

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) has won a contract worth RM11.8 million from Petronas Dagangan Bhd (PetDag) to supply automatic tank gauging (ATG) for Petronas stations.

In a statement yesterday, DNeX said the contract, awarded to its wholly-owned subsidiary OGPC Sdn Bhd, involves undertaking the supply, installation, testing, commissioning and maintenance of ATG and its accessories for some 200 Petronas stations nationwide.

The contract, which commenced last Friday, is for two years, with an option to extend for another two years.

DNeX said works on the project also include the supply, installation, testing, commissioning and maintenance of the Wetstock Management System connected to ATG and its accessories, as well as relevant hardware, software on cloud-based platforms and cybersecurity systems.

DNeX explained that ATG and its accompanying hardware and software system provide automatic measurement of fuel storage tanks, thus enabling more accurate and improved real-time reading.

“The project augurs well for efforts to boost book order, and further expand on business growth of OGPC, including contracting work in the downstream sector,” DNeX executive deputy chairman Datuk Samsul Husin said in the statement.

According to Samsul, OGPC, which is a supplier, service provider and contractor for oil and gas, petrochemical, power, palm oil and general industries, has contributed a new stream of revenue for DNeX since the group acquired the company in 2016.

“We are continuously growing this business, namely to get more jobs, which OGPC has been delivering this year,” he said.

DNeX shares closed down 1.5 sen or 5% at 28.5 sen yesterday, bringing it a market capitalisation of RM501.04 million.

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