SapuraCrest-Kencana merger goes ahead

By Tan Hwee Hwee

 17 May 2012 22:59 GMT

SapuraCrest and Kencana ­Petroleum have carried out a merger plan through a joint listing on Malaysian bourse that has created a 10 billion ringgit ($3.2 billion) Malaysian outfit with sufficient bulk to compete with the world’s top integrated oilfield services providers, writes Tan Hwee Hwee.

Shares in the new merged company, SapuraKencana Petroleum were set to start trading at 2 ringgit per piece on 17 May.

SapuraKencana’s chairman, Hamzah Bakar, said the merger creates a Malaysian player “with the scale and size required to thrive [in a sector] that is trending towards full service contracts.

“We can now offer full engineering, procurement, construction, installation and commissioning services,” Bakar added.

Before the merger, the two companies were already leading players on their home turf — SapuraCrest is a major transportation and installation contractor, while Kencana Petroleum is among the top…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index