10/13/2010 — The Edge Financial Daily
Dubai-based Oilfields Supply Centre Ltd (OSC) and Tanjong Agas Supply Base & Marine Services Sdn Bhd (TASBMS) have committed RM620 million to build a supply base in the East Coast Economic Region Special Economic Zone (ECER SEZ).
The companies entered into a joint-venture agreement to build, manage and operate a multifunctional common user supply base within Tanjong Agas Oil & Gas and Logistics Industrial Park, which is located within the ECER SEZ in Pekan, Pahang.
The joint-venture company is known as Tanjong Agas Oilfields Supply Centre Sdn Bhd while the supply base is expected to be ready for operations in 2013. The supply base will be developed on a 250-acre land along a 1km shoreline with water depth of 20 metres.
Upon completion, the supply base will offer a full range of support facilities and services for local and international companies that are involved in the offshore exploration, exploitation and production of oil and gas within Malaysia and the regional waters.
In a statement, ECER Development Council (ECERDC) CEO Datuk Jabasingam Issace John said the project was expected to create over 2,000 job opportunities for the locals.
OSC is the first Middle East investor in ECER, which was a result of a trade investment mission to the Middle East by ECERDC in May.
“At the moment, several potential investors from the Middle East had already shown interest in ECER and ECERDC is optimistic that more investors from the region will establish their presence in ECER soon.
“They would be pleased to know that most of the basic infrastructure in ECER is already in place and the region also offers them a very competitive package of both fiscal and non-fiscal incentives,” Issace said.
ECER’s incentives include 100% income tax exemption for up to 10 years commencing from the year the company derives statutory income, 100% investment tax allowance on qualifying expenditure and competitive land prices.
TASBMS is also the developer of the industrial park while OSC is an oilfields services company that has specialised technical, managerial and operational skills in building, owning and operating supply bases that support the oil, gas and power generation businesses.