OIL storage and blending company KIC Oil and Gas Ltd will meet with the Government next week to discuss the latest developments in making a reclaimed 40ha-island in Tanjung Bin, Johor, the region's petroleum hub.
KIC Oil Terminals Sdn Bhd managing director Abdul Rashid Mohamad Isa said the company has been mandated by the Transport Ministry to develop, operate and manage the island into a petroleum hub on July 20 this year.
"This mandate supersedes a July 15 2005 announcement by Sumatec Resources Bhd (that it will develop Port of Tanjung Pelepas into a petroleum hub)," he told a press conference after signing a US$50 million (US$1 = RM3.76) trade financing facility agreement with Standard Chartered Bank, Offshore Labuan in Port Klang yesterday.
Abdul Rashid said KIC subsequently received a letter from the Government calling for a meeting on August 25 with regards to the development of the island.
In March this year, KIC said it was planning to invest between RM600 million and RM700 million to build a 1.2 cu m petroleum storage facility on the reclaimed island.
The Government also pledged to invest between RM300 million and RM400 million to set up infractructure on the reclaimed island. To date, some RM100 million has been spent to develop the island. "We are keeping our target to complete it by the end of 2007," said Abdul Rashid.
Abdul Rashid also said KIC will seek a three-month extension from the Securities Commission to complete its reverse takeover (RTO) proposal of PDZ Holdings Bhd, a local shipping company. That is because the company has until August 24 to decide whether to exercise the RTO option.
"Nevertheless, we expect to complete the RTO of PDZ by the middle of next year," he added. PDZ, a company controlled by tycoon Tan Sri Tan Hua Choon, had proposed to buy KIC's entire issued and paid-up capital which currently stands at US$4 million for RM180 million.
The purchase will be settled with the issue of 120 million new PDZ shares at RM1.50 each. When completed, the current shareholders of KIC will together hold 52 per cent stake in PDZ. Earlier, Abdul Rashid said the US$50 million trade financing facility from Standard Chartered Bank will be used to purchase more bunker fuel oil to supply Malaysian ports.
So far, KIC has secured trade financing facilities of US$42 million from Bank Islam (Labuan) Ltd and US$50 million from DBS Bank Ltd of Singapore.
Yesterday's function also saw KIC Oil Terminals signing an agreement with Westport Bunkering Services Sdn Bhd to lease and operate storage and bunkering facilities at Westport for 10 years with another 10 years option.
Also present at the signing are Kelang Multi Terminal Sdn Bhd executive director Ahmayuddin Ahmad, KIC director Datuk Mohd Hilmey Mohd Taib, KIC executive chairman Faidzan Hassan Al-Qadiry, Kelang Multi Terminal Sdn Bhd executive chairman Tan Sri G. Gnanalingam and Standard Chartered Bank Malaysia head of corporate client relationships David Koay. Abdul Rashid said so far, it has spent some US$3 million to compensate former operator FAMM-Indah Sdn Bhd for the bunkering facilities.
With the additional facilities, KIC hopes to post a record US$800 million in revenue by the end of this year, up from US$130.3 million last year. For the six-month period ended June 30 2005, its revenue was US$205 million.
NST, 17.5.2005 |
