Kim Heng O&M unit enters into partnership deal with Iranian fund

SINGAPORE - Catalist-listed Kim Heng Offshore & Marine Holdings said on Friday that its unit, Kim Heng Marine & Oilfield (KHMO), has entered into a non-binding memorandum of understanding with the Iran Marine Fund to explore setting up a strategic partnership.

Under the partnership, KHMO would provide technical expertise and financing to Iranian offshore marine and oil & gas projects relating to shipbuilding, chartering of KHMO's fleet and marine facilities, purchasing of offshore vessels and rig management services, among other things.

The Iran Marine Fund is a state-owned enterprise of the Ministry of Industry, Mining and Trade of the Islamic Republic of Iran.

It was established with the aim of achieving sustainable development and acts as a bridge between the government and the private sector, through the provision of finance and technology.

Kim Heng said it believes that the strategic partnership represents a good opportunity for the company to widen its global client network and better position it to secure projects in Iran and its surrounding areas.

A news article published in the Tehran Times on Wednesday said that Kim Heng had agreed to provide €400 million to finance and develop Iran's marine industries in.

Kim Heng clarified in its statement on Friday that under the MOU, the total value of the projects to be entered into under the strategic partnership shall be up to €400 million over a period of 10 years.

This represents only an estimated value of the intended projects under collaboration with the Iran Marine Fund. The commercial terms and form of financing for each project under the strategic partnership will be negotiated on a project-by-project basis and documented in definitive agreements.

As such, there is no certainty that any of the projects will materialise or that any definitive agreements could be entered into, Kim Heng said.