GE Power Systems (Malaysia) Sdn Bhd operates as a supplier of power generation equipments. The company is based in Petaling Jaya, Malaysia. GE Power Systems (Malaysia) Sdn Bhd operates as a subsidiary of GE Pacific Private Limited.
Lot 6.05, Level 6
Petaling Jaya, 47800
Sapurakencana Petroleum Berhad and GE Power Systems (Malaysia) Sdn Bhd to Participate in A Joint-Venture Company, Sapurakencana GE Oil & Gas Services Sdn Bhd
Feb 7 14
The Board of Directors of SapuraKencana Petroleum Berhad (SKPB) announced that SK Services has on 5 February 2014 entered into a joint-venture agreement (JVA) with GE Power Systems (Malaysia) Sdn Bhd (GE) in relation to the JVC. SK Services and GE collectively referred to as the Parties. The purpose of the JVA is for the Parties to work together for the provision of after-sale services of rotating oil and gas equipment that GE’s Oil and Gas business division has sold or will sell to its customers, and such other business as the shareholders of the JVC may from time to time agree (Business). The authorized capital of the JVC is MYR 100,000. SK Services and GE each subscribe 51,000 ordinary shares and 49,000 ordinary shares of JVC, representing 51% and 49%, respectively. The JVA is conditional upon the following conditions being fulfilled or waived: the warranties given byï¿½GE and SK Servicesï¿½being true and accurate in all material respects, as at the date of Completion; JVC being granted a license from PETRONAS pursuant to the Petroleum Regulation 1974 to provide manpower, materials, consumables, equipment and facilities necessary for the maintenance, repair, overhaul, refurbishment and performance test of gas turbines and auxiliaries under PETRONAS’ Standardised Work & Equipment Category; no injunction, writ, restraining order or other order of non-consummation issued, and no proceedings or lawsuit having been commenced, by any Governmental Entity; and the ancillary agreements to be entered by the JVC with either GE and SK Services being in the agreed form. The Parties shall work to ensure that the conditions precedents in the JVA are satisfied no later than 31 March 2014 (subject to any further extension agreed in writing by the Parties) at which time completion shall take place. The JVA would require the JVC to acquire the assets and operations (including transfer of certain employees) from Malaysian Advanced Refurbishment Services Sdn Bhd (MARS), a subsidiary of SKPB, via an asset transfer agreement dated 5 February 2014, for the purpose of the operation of the Business of JVC. The JVA shall remain in full force and effect unless and until terminated in accordance with its terms and conditions. The JVA was entered into for the purpose of outlining the relationship and the cooperation between GE and SK Services in the management and dealing in the affairs of the JVC. The risks related to the transactions in connection with the JVA are typical to any commercial contracts. These include breaches or non-performance of JVA or other obligations under the JVA. The above joint venture is not expected to have any material effect on SKPB group’s earnings, net assets, share capital and substantial shareholdings of SKPB for the financial year ending January 31, 2015.