Malaysia-based diversified company KNM Group’s wholly-owned subsidiary, KNM Process Systems Sdn Bhd, is forming a 49:51 joint venture company with ADAP Capital Sdn Bhd to undertake in oil/gas and petrochemical projects in Sarawak.
Sarawak-based ADAP Capital is a Bumiputera-controlled company and is principally involved in asset portfolio management, as well as investment and private equity matters.
KNM said the scope of the jv company includes engineering procurement and construction for oil, gas and petrochemical plants; manufacture and supply for the relevant equipment for the plants as well as build, own and operate strategic projects.
ADAP Capital will be responsible for the business development with clients and state government of Sarawak to secure projects, while KNM will be responsible for the technical proposal for the projects.
The jv company will engage in engineering, procurement, construction contracts for oil, gas and petrochemical plants; manufacture and supply of process equipment, tanks, piping and structures for oil, gas and petrochemical plants; as well as build, own and operate strategic projects.
The agreement will be valid for 12 months from the date of execution and may be extended for another period subject to written approval by both parties, the companies added.