KUALA LUMPUR (June 22): Handal Resources Bhd has terminated their collaboration with MEO Australia Limited (MEO) for a Risk Service Contract (RSC) with Petroliam Nasional Bhd (Petronas).

In a statement to Bursa Malaysia today, the integrated offshore crane services provider and fabricator cited current market conditions and Petronas’s deferment of the RSC for marginal fields as reasons for its termination.

Handal (valuation: 1.7, fundamental: 1.4) had entered into the collaboration with MEO in early July 2013 to consolidate both parties’ expertise in the development of the marginal oil and gas (O&G) field and to pursue the RSC with Petronas.

“The collaboration agreement has ceased to have any effect as both parties have decided not to pursue it in relation to the project,” the company said.

Under the agreement, Handal was responsible for providing its expertise in local knowledge of upstream activities while MEO, an independent O&G company, provided its expertise in exploration, appraisal, development and production aspects.

(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.)