SapuraCrest, Kencana merger to become fifth largest O&G service provider in the world

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The proposed merger of 2 of the country’s major oil and gas companies SapuraCrest Petroleum Berhad (SapuraCrest) and Kencana Petroluem Berhad (Kencana) will be a move towards creating a single entity which will be expected to be a major player in the international market. The merger which is currently on track into becoming a reality will enable the company to compete for more capital intensive projects with other oil companies.

The merger of the 2 companies, which was valued at RM11.85 billion is expected to compete in the first quarter of 2012 and it will result in the company becoming the fifth largest oil and gas service provider in the world. They have since established the Integration Committee which will be chaired by Datuk Shahril Shamsuddin, the Executive Chairman and President of SapuraCrest and Datuk Mokhzani Mahathir, the CEO of Kencana group which they see as an enabler for them to compete as a single major force.