KUALA LUMPUR (Jan 5): Enra Group Bhd via an indirect subsidiary has formed a joint venture (JV) with a unit of Australia's Icon Engineering Pty Ltd to provide low cost solutions to the upstream oil and gas industry within and outside Malaysia.

In a filing to Bursa Malaysia today, Enra Group said its indirect wholly-owned subsidiary Enra Oil & Gas Services Sdn Bhd (EOGS) and Icon Oilfield Solutions Sdn Bhd have entered into a shareholders agreement to jointly establish a JV company, to be known as Enra Icon Sdn Bhd.

EOGS will have a 70% stake in the JV, while Icon Oilfield will hold the remaining 30%.

The intended principal activity of the JV company is to provide products and/or services for well head platform and light weight structure engineering works in respect of offshore novel facilities.

This includes conceptual engineering design, front end engineering design and detailed design with required deliverables to be used for subsequent engineering stage related to the procurement, fabrication, installation, commissioning and start-up of the facilities.

"The proposed JV is in line with the expansion plan of Enra Group to leverage on the opportunities in niche and/or cost effective solutions for the oil and gas industry.

"The intended activities of the JV company are expected to contribute positively to the profitability and growth of the company in the future," it said.

EOGS is a wholly-owned subsidiary of Enra Energy Sdn Bhd, which is in turn wholly owned by Enra Group.

The company provides warehousing and logistics services for oil and gas contractors, while the Icon group works primarily in the upstream offshore oil and gas sector both in support of drilling operations and in the area of offshore facilities design and construction.

EOGS will fund its initial aforesaid investment in the JV company through internally generated funds.

Today, Enra Group shares were down 7 sen (3.4%) to close at RM1.97, for a market capitalisation of RM265.79 million.