10/13/2010 — Business Times
A Dubai-based firm has been roped in to help build an initial RM620 million oil and gas supply centre at the Tanjong Agas oil and gas and logistics industrial park in Pekan, Pahang.
Oilfields Supply Centre Ltd (OSC) will partner park developer Tanjong Agas Supply Base and Marine Services Sdn Bhd (TASBMS).
They will form a company, called Tanjong Agas Oilfields Supply Centre Sdn Bhd, to build, own, manage and operate the multi-functional common user supply base.
The facility, touted as the first in the region to provide comprehensive services for the oil and gas industry, is located within the East Coast Economic Region (ECER) special economic zone in Pekan.
The groundbreaking ceremony will be held next month and the facility is expected to be ready for operations in 2013.
TASBMS chairman, the Tengku Muda of Pahang (Tengku Abdul Rahman Sultan Ahmad Shah), and OSC director and general manager of corporate affairs Iqbal Mohammed Abdullah Abedin signed the joint-venture agreement in Kuantan yesterday.
Witnessing the event were Sultan Ahmad Shah and ECER Development Corp (ECERDC) chief executive officer Datuk Jebasingam Issace John.
OSC is an oilfield service company which has developed specialised technical, managerial and operational skills in building, owning and operating supply bases that support the oil, gas and power generation industries.
TASBMS managing director Mohd Faidzal Ahmad Mahidin said the supply base will take up 100ha along a 1km shoreline in the industrial park.
The park’s whole development will cover 1,700ha. Once completed, it will offer a full range of support facilities and services for local and international companies in the offshore oil exploration and related industries.
Jebasingam said the supply base, a key component in the industrial park, is projected to generate more than 2,000 jobs for the locals.
He said OSC was the first investor from the Middle East to establish a presence in the ECER following the ECERDC’s investment mission in the region in May.
“More are expected to invest in the area by early next year, including established companies from the United Arab Emirates, Saudi Arabia and Qatar,” Jebasingam said.
He added that the companies were attracted to invest in the ECER given its competitive fiscal and non-fiscal incentives.
Among the incentives are 100 per cent income tax exemption for up to 10 years, 100 per cent investment tax allowance on qualifying expenditure for five years and competitive land prices.
Iqbal said the Tanjong Agas facility, as the only common user supply base in the region, was expected to attract major industry players to use its services and operate in the area on a long-term basis.
He said it would be cheaper for the companies to operate there, especially those with 72 offshore oil rigs in the South China Sea.
Iqbal also said that OSC will transfer its expertise and technology to Malaysia, including training the locals to be skilled workers.