KUALA LUMPUR (Aug 3): SapuraKencana Petroleum Bhd is establishing a joint venture (JV) to explore opportunities in Brunei Darussalam.

In its filing with Bursa Malaysia, SapuraKencana said its wholly-owned subsidiary SapuraKencana (B) Sdn Bhd (SapuraKencana Brunei) had entered into a shareholders agreement (SA) with Euthalia Energy Solutions Sdn Bhd and RSK Petroleum Sdn Bhd, which will be the JV company.

SapuraKencana said the purpose of RSK is to identify potential business opportunities, investments, JVs, business combinations or other transactions in Brunei with respect to works and services in the oil and gas industry.

Under the SA, SapuraKencana Brunei will own a 70% stake in RSK, while the remaining 30% will own by Euthalia.

“Barring any unforeseen circumstances, the SA is expected to be effective by Aug 31, 2015,” the filing read.

SapuraKencana (fundamental: 0.85; valuation: 0.8) fell one sen or 0.41% to settle at RM2.44 today, it has a market capitalisation of RM14.68 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)