SINGAPORE - Federal International (2000) is teaming up with China Merchants Industry Holdings Co (CMIH) to work together on certain identified oil and gas projects in the Indonesia market.
The two parties inked a memorandum of understanding on Thursday, said Federal International.
CMIH, a wholly-owned subsidiary of the China Merchants Group, is an engineering, procurement, construction, installation and commissioning contractor. Its capabilities include the design and construction of offshore drilling vessels, structures, production equipment, specialized vessels and vessel conversions.
Meanwhile, Federal International said it has established strong business ties and network in the South-east Asia region and in particular, in Indonesia.
Its expertise in the procurement, supply, design, manufacture, assembly, distribution and provision of flowline control products, other equipment and services for the oil and gas industry will enhance the co-operation between CMIH and the group, it noted.
Federal International's executive chairman and chief executive Koh Kian Kiong noted the MOU will enhance the group's strategic and competitive advantage.
"Through the group's strong business ties and network in Indonesia, CMIH and the group expects to secure oil and gas projects in the country. CMIH and the group are currently in discussion with various Indonesian parties on a number of identified projects," he added.
Shares of Federal International closed 1.5 cents or 3.9 per cent higher at 40 cents on Thursday, before the announcement was made.