KUALA LUMPUR: Ahmad Zaki Resources Bhd (AZRB) is investing RM27 million ($7.4 million) into the expansion of its bunkering facilities at the Tok Bali Port in Malaysia, reports The Edge Markets here the other day.
RM12 million ($3.3 million) is slated to go towards two three-litre marine gas oil (MGO) tanks while RM15 million ($4.1 million) will go towards a five-litre water tank, which will be completed over the next two to three months.
The company has already leased the land for 32 years.
“Seeing that Tok Bali is in a very strategic location, in three to four years’ time, we would see very good growth,” said AZRB’s COO Datuk Haji Roslan Jaffar.
Activity at the port is expected to grow over the next few years due to the port’s proximity to land and key exploration areas such as the Malaysia-Thailand Joint Development Area (MTJDA) and the Malaysia-Vietnam Commercial Arrangement Area.
“ In three to four years’ time, we would see very good growth Datuk Haji Roslan Jaffar, COO, AZRB Roslan said that the country is losing out on business to Thailand that could otherwise come to Malaysia.
The expansion could potentially lead 10 production service contract customers to switch from ports in Thailand to the Tok Bali Port, he said.
The ongoing drop in crude prices is also not a deterrent to expansion, especially as he believes exploration will continue.
“Yes, it affects us but it is not as if Malaysia started exploring and exporting oil when oil price was at $100 per barrel,” he said.
“Malaysia has been an oil and gas player even when oil price was $20 per barrel.”
It was reported late last year that fellow Malaysian port Labuan Port will also see its bunkering facilities expand.
