Sumatec Ventures Into Shipping

The Star, 2 August 2004

SUMATEC RESOURCES BHD on June 21, 2004 signed an agreement for the purchase of four Miri-based companies: SEMUA SHIPPING SDN BHD, SEMADO MARITIME SDN BHD, MINI TANKER CHARTERING SDN BHD and TUBAU OIL SUPPLY SDN BHD for a total consideration of Malaysian Ringgit Fifty Million.

In the Share Purchase Agreement signing ceremony held in a hotel in Kuala Lumpur, SUMATEC Executive Chairman, Encik Wan Kamaruddin informed the press that the shipping company has in possession a total of 6 coastal oil tankers all on existing short and long term charter to SHELL and other oil companies. The projected annual turnover for 2004 is in excess of RM40 Million and the profits is expected to contribute significantly to Sumatec Resources Berhad.

Encik Wan went further to mention that SUMATEC has long been an active player in the onshore oil and gas business and this acquisition will see SUMATEC gaining a strong foothold in the offshore oil and gas marine transport and logistics business. SUMATEC intends to expand the coastal oil tanker chartering business to include the offshore anchor handling tug boat and supply boat chartering business. The new business is in line with Petronas' encouragement for Malaysian companies to own and operate ships in the huge offshore marine transportation and logistics business, especially in the current high oil price situation where offshore oil and gas exploration and development has been intensified by all the oil and gas producing countries.

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