MTQ Corp is in talks to be the exclusive service provider for an undisclosed original equipment manufacturer (OEM) of oilfield equipment in the Asia Pacific region.
This comes after the engineering, maintenance and subsea services provider signed a non-binding letter of intent (LOI) with an undisclosed original equipment manufacturer of oilfield equipment today.
Under the LOI, MTQ intends to provide support for after-sales service needs for pressure-controlled equipment owned by the OEM’s customers over 10 years.
In conjunction with that, the company has also proposed to acquire a property and equipment from the said OEM for US$5.3 million ($7.2 million).
See also: MTQ to sell off Aussie subsidiary for $18 mil
These comprise a JTC leasehold property in Tuas and “certain capital equipment” necessary for providing the after-sales services.
MTQ says the proposed collaboration is still being negotiated between the parties and is subject to contract, relevant regulations and necessary approvals, including from JTC Corp.
“The proposed strategic collaboration will provide the group the opportunity to work with a major OEM in this area, which is core to the group’s business activity within the oilfield equipment sector,” the company says in a July 27 filing.
On July 27, MTQ closed up 0.5 cent or 2.1% at 24.5 cents with 1,000 shares changed hands.
