By Sharen Kaur
sharen@nstp.com.my
Published in NST on May 2, 2012
PETALING JAYA: Scomi Engineering Bhd is conducting due diligence on a plan to venture into the oil and gas business in Brazil, including opening a plant there to produce drilling fluids.
According to Scomi Brazil country president Hilmy Zaini Zainal, the due diligence, which will complete within the next few months will help Scomi decide the best partners for its venture.
"We do not have a clear cut position on what we want to do yet but we have decided to put our resources in oil and gas developments in Brazil, instead of just being involved in monorail projects.
"We need to strategise and find the easiest way to enter the market. We hope something will materialise for us in the oil and gas sector in Brazil by the end of this year or early next year," he said.
According to Scomi Brazil country president Hilmy Zaini Zainal, the due diligence, which will complete within the next few months will help Scomi decide the best partners for its venture.
"We do not have a clear cut position on what we want to do yet but we have decided to put our resources in oil and gas developments in Brazil, instead of just being involved in monorail projects.
"We need to strategise and find the easiest way to enter the market. We hope something will materialise for us in the oil and gas sector in Brazil by the end of this year or early next year," he said.
Hilmy did not rule out a partnership with Montagens e Projetos Especiais SA (MPE), which is involved in oil and gas, fabricating topside models.
Scomi and MPE are partners for the RM2.6 billion monorail project in Sao Paulo, secured last year.
"Scomi in Brazil should not just focus on monorail projects, but also oil and gas as plenty of opportunities are coming up. So, the next phase of development for Scomi in Brazil is going to be in that area," Hilmy told Business Times in an interview.
Scomi is a leading provider of oilfield services to the oil and gas industry and one of three integrated monorail system providers in the world.
It is also one of the world's leading providers of high performance drilling fluids solutions and waste management services, through its subsidiary, Scomi Oiltools.
Hilmy said Scomi has been exploring oil and gas opportunities in Brazil in the last one year.
He said the company can supply its products and services to the Brazilian market.
"We are looking at fluid services. We plan to set up a blending plant in Brazil to develop the right fluids for the market. The due diligence will determine the size of the plant," he said.
Hilmy said Scomi plans to target oil and gas operators and drilling contractors in Brazil.
The company may also plan to offer its waste management services there, he added.
Business Times reported last week that Scomi is eyeing a new monorail project in Brazil, which is estimated to be worth more than RM2.5 billion. The company had already won two monorail projects in the country - in Sao Paulo and Manues worth a combined RM5.2 billion.
Scomi and MPE are partners for the RM2.6 billion monorail project in Sao Paulo, secured last year.
"Scomi in Brazil should not just focus on monorail projects, but also oil and gas as plenty of opportunities are coming up. So, the next phase of development for Scomi in Brazil is going to be in that area," Hilmy told Business Times in an interview.
Scomi is a leading provider of oilfield services to the oil and gas industry and one of three integrated monorail system providers in the world.
It is also one of the world's leading providers of high performance drilling fluids solutions and waste management services, through its subsidiary, Scomi Oiltools.
Hilmy said Scomi has been exploring oil and gas opportunities in Brazil in the last one year.
He said the company can supply its products and services to the Brazilian market.
"We are looking at fluid services. We plan to set up a blending plant in Brazil to develop the right fluids for the market. The due diligence will determine the size of the plant," he said.
Hilmy said Scomi plans to target oil and gas operators and drilling contractors in Brazil.
The company may also plan to offer its waste management services there, he added.
Business Times reported last week that Scomi is eyeing a new monorail project in Brazil, which is estimated to be worth more than RM2.5 billion. The company had already won two monorail projects in the country - in Sao Paulo and Manues worth a combined RM5.2 billion.
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