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Mun Siong to set up Malaysian JV for contract with Petronas
MAINBOARD-LISTED Mun Siong Engineering has won a service contract from Malaysian oil and gas company Petronas, in tandem with a separate Malaysian company, it said.
The contract - for integrated turnaround works and maintenance works with state-owned Petronas - was awarded on March 1, but announced only on Thursday.
Mun Siong has been working with its Malaysian partner to meet all the conditions precedent in the letter of award since then, the company said in its announcement.
It added that both Mun Siong and the unnamed Malaysian company "are reviewing certain key material terms" in their planned joint-venture agreement, with the work for Petronas to be done by a joint venture between the two companies.
The initial contract is for five years, from March 15, said Mun Siong. Petronas can also extend the contract period - first by three years, then by another two years afterwards.
Mun Siong said that it would make more announcements "as and when there are material updates or developments in connection with the contract award".
The company advised caution in trading of its shares as there was no guarantee that the conditions precedent will be fulfilled to Petronas' satisfaction.
"Furthermore, there is no certainty or assurance that the key material terms in the joint-venture agreement . . . can be resolved to each party's satisfaction," it added in its caveat.