Scomi Group Bhd is disposing of its drilling waste management assets and businesses to National Oilwell Varco, Inc.'s subsidiaries for RM107.293 million (US$25.035 million).
The business was held by Scomi Oiltools, Inc (Soinc) and Scomi Oiltools De Mexico, S.DE R.L DE C.V (SMEX), both held indirectly via a 76.08 per cent subsidiary, Scomi Oilfield Ltd, Scomi said in a filing to Bursa today.
The bulk of the proceeds from the disposal would be used to repay borrowings.
Scomi said the disposals were in line with its ongoing business strategy to rationalise and streamline existing assets by exiting from volatile markets and to re-focus on Asia, a stable and growing market.
Going forward, the company expects the business strategy to bring in stable earnings.
In addition, Scomi, via Scomi Oilfield, is repositioning itself in Malaysia by increasing its products and services portfolio within the upstream oil and gas industry.
The company expects to capture a share of these markets given the increase in Petroliam Nasional Bhd's oil and gas-related activities in Malaysia. -- Bernama
The business was held by Scomi Oiltools, Inc (Soinc) and Scomi Oiltools De Mexico, S.DE R.L DE C.V (SMEX), both held indirectly via a 76.08 per cent subsidiary, Scomi Oilfield Ltd, Scomi said in a filing to Bursa today.
The bulk of the proceeds from the disposal would be used to repay borrowings.
Scomi said the disposals were in line with its ongoing business strategy to rationalise and streamline existing assets by exiting from volatile markets and to re-focus on Asia, a stable and growing market.
Going forward, the company expects the business strategy to bring in stable earnings.
In addition, Scomi, via Scomi Oilfield, is repositioning itself in Malaysia by increasing its products and services portfolio within the upstream oil and gas industry.
The company expects to capture a share of these markets given the increase in Petroliam Nasional Bhd's oil and gas-related activities in Malaysia. -- Bernama
