Malaysia-listed bunkering firm Straits Inter Logistics (Straits) on Monday (6 May) said it has entered into a heads of agreement (HOA) with Elsa Energy Sdn Bhd. to explore potential acquisition opportunities between Straits and Elsa.
Elsa is principally engaged in the upstream segment within the oil and gas industry with focuses on the provision of services in subsurface geoscience, reservoir engineering, production optimization, well services, manpower recruitment, digital transformation and renewable energy.
Its revenue is mainly derived from the provision of services in subsurface geoscience and production optimisation.
At present, Elsa holds a license from Petroliam Nasional Berhad (Petronas) that qualifies Elsa to supply goods and services to both upstream and downstream sectors within the oil and gas industry to Petronas group of companies as well as all oil and gas companies in Malaysia.
Malaysia is established as Elsa's principal market as its principal activities are carried out predominantly in the region.
“Elsa is mainly engaged in the upstream segment within the oil and gas industry, whilst Straits is engaged in the provision of oil bunkering services and trading in oil products,” said a statement from Straits.
“The execution of the HOA is to allow Straits and Elsa to explore potential business collaboration opportunities.
“The potential business cooperation may include the possibility of a joint venture, business partnership and/ or acquisition of equity stake between the Parties for the purpose of further expanding and developing their respective business operations.”
Straits currently owns and operates nine Malaysia-flagged bunkering vessels ranging from 530 to 4,700 dwt and delivers low sulphur marine gas oil (LSMGO) to nine locations in Malaysia.
The company also started Straits Marine Fuels & Energy Sdn Bhd (SMF) in early March as an effort to move into fuel oil bunkering at Johor in Malaysia; it allegedly acquired two additional bunker tankers for the operation.
Straits ended financial year 2018 with a 61% increase in net profit.
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Photo credit: Straits Inter Logistics
Published: 7 May, 2019
