Kim Heng Offshore & Marine Holdings has signed a joint venture agreement (JVA) with Malaysia-based marine service vessels operator RUHM Marine Sdn Bhd to form a joint venture company (JVC) in Malaysia called RUHM Bridgewater Offshore Sdn Bhd.

The agreement was signed by Bridgewater Offshore Sdn Bhd, a newly-incorporated entity that’s wholly-owned by Kim Heng’s 51%-owned subsidiary Bridgewater Offshore Pte Ltd.

The JVC will be 51%-owned by RUHM and 49%-owned by Bridgewater Offshore Sdn Bhd.

It will comprise a total of 1,000 ordinary shares with a capital of RM1,000 ($328.70).

The initial share capital of the JVC will also include asset injection by Kim Heng of a vessel called Bridgewater 63 valued at US$900,000 ($1.20 million) into a wholly-owned subsidiary of the JVC.

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SEE: Kim Heng Offshore & Marine to dispose 3 vessels to joint venture company for $3 mil

According to Kim Heng, the JVC is set up to further expand the company’s offshore marine business in Malaysia in addition to its existing operations.

It will undertake marketing, operating, maintaining and chartering vessels to customers for use within the Malaysian territory and its exclusive economic zones.

“With this joint venture, the group is well positioned for the expected upturn of the oil and gas industry and anticipates to deploy more of the group’s vessels in the near future,” reads the Feb 18 statement.

The investment in the JVC is expected to “further enhance” Kim Heng’s business potential in Malaysia.

The directors of the new JVC are Melvin Tan, the brother of Kim Heng’s executive chairman and CEO Thomas Tan, Justin Anderson Tan, Thomas’ son, as well as Mathiew Rajoo.

Rajoo is not an associate of a director or controlling shareholder of Kim Heng.

Shares in Kim Heng closed 0.1 cent lower or 2.5% down at 3.9 cents on Feb 18.