MISC And Dialog In JV With Asia Pacific’s Largest Physical Jet Fuel Trader
6 October 2011
International maritime conglomerate, MISC Berhad (“MISC”) and Malaysia’s leading oil & gas integrated specialist technical services provider, Dialog Group Berhad (“DIALOG”), through its joint venture company, Centralised Terminals Sdn. Bhd. ("CTSB"), today signed a Shareholders’ Agreement with China Aviation Oil (Singapore) Corporation Ltd ("CAO"), the largest physical jet fuel trader in the Asia Pacific region.
The Shareholders Agreement is for the establishment of a joint venture company in Malaysia known as "Langsat Terminal (Three) Sdn Bhd" ("Langsat Terminal Three"), to undertake the design, development, operation, management and maintenance of a 380,000 cbm petroleum products storage tank terminal facility within the vicinity of Tanjung Langsat Port, Johor.
With the signing, CTSB will own a 74% equity stake in Langsat Terminal Three while CAO will own the remaining 26% equity stake. CAO will also enter into a Terminal Usage Agreement with Langsat Terminal Three for the lease of all the capacity of the tankages and related facilities at the Langsat Terminal Three for an initial term of 7 years.
The signing ceremony took place at Menara Dayabumi. Signing on behalf of CTSB was Datuk Nasarudin Md Idris, President/Chief Executive Officer (CEO) of MISC and Chairman of CTSB, while CAO was represented by its CEO, Mr. Meng Fanqiu. Also present at the signing was Mr. Ngau Boon Keat, Executive Chairman of DIALOG and Director of CTSB.
Speaking at the signing ceremony, Datuk Nasarudin said that the establishment of Langsat Terminal Three is a major milestone in the development of CTSB since its inception in 2009, and it is a positive sign of the growth and potential of both the company and the tank terminal industry in Malaysia as a whole. He also thanked CAO for their trust and support in selecting CTSB as their partner in this venture.
Presently, MISC and Dialog, through CTSB operates a tank terminal facility in Tanjung Langsat with a capacity of 476,000 cbm, under Langsat Terminal (One) Sdn Bhd. Development of an additional 171,000 cbm facility at the adjacent Langsat Terminal (Two) is currently underway and is scheduled for completion by end 2011.
MISC is a world leading international maritime corporation and one of the top five shipping conglomerates in the world by market capitalisation. The company is involved in the business of ship owning, ship operating, other shipping related activities, owning and operating of tank terminals and offshore floating facilities as well as marine repair, marine conversion and engineering and construction works. MISC owns and operates more than 170 vessels with a combined tonnage of approximately 15 million deadweight tonnes, trading in various parts of the globe. Its first venture into tank terminals was in Tanjung Langsat, Johor in 2009 via a partnership with Dialog. Pursuant to that, MISC expanded its tank terminal presence and logistics assets to 13 locations in 12 countries, through a joint venture company with Vitol Holdings, i.e. VTTI B.V. (VTTI), bringing the total tank terminal capacity of the company to approximately 8.6 million cbm by end 2012.
Since its commencement in 1984, Dialog Group Berhad (DIALOG) has grown into one of Malaysia’s leading integrated specialist technical services providers to the oil, gas and petrochemical industry. The services provided range from upstream to downstream activities. Based in Kuala Lumpur, with offices and facilities in Malaysia, Singapore, Thailand, Indonesia, Vietnam, China, Hong Kong, Australia, Saudi Arabia, United Kingdom, USA, New Zealand and India, DIALOG has business interests and customers throughout the Asia Pacific region, the Middle East, Europe, Africa, USA and South America. Among its customers are multi-national oil majors, national oil companies as well as multi-national engineering and services providers.
CTSB is a Malaysia-incorporated company owned by Dialog Group Berhad and MISC Berhad, both of which are public companies listed on the Main Market of Bursa Malaysia Securities Berhad, Malaysia. CTSB is in the business of investing in companies engaged in the business of developing, managing, operating and maintaining tank terminals.
CAO, a public company listed on the Main Board of the Singapore Exchange Securities Trading Limited, is primarily involved in jet fuel supply and trading, international trading of jet fuel and other oil products and investment in oil-related assets.