Malaysian shipping firm marks Middle East foray with Saudi tie-up

Malaysia International Shipping Corp. (MISC) said Monday it has tied-up with Saudi Arabian firm Bakri Navigation Co Ltd, marking its foray into the Middle East.

The pact will enable MISC, a unit of national oil firm Petronas, to seek opportunities for long-term shipping contracts with major oil, gas and petrochemical producers and traders in the Middle East, it said.

MISC and Bakri will form a 50-50 joint venture company which will be involved in the ownership, management, marketing and operation of maritime transportation and shipping related businesses, it said in a statement.

The joint-venture firm will start by constructing and operating chemical carriers to service a leading Middle Eastern petrochemical producer on long charter. MISC said its associate, Malaysia Shipyward and Engineering, had also signed a memorandum of cooperation with Bakri International Energy to shipyard, oil and gas heavy engineering businesses in the Middle East and the Far East.

It said it would set up its regional office in Bahrain, to be located at the new Petronas office which was launched Monday by Prime Minister Mahathir Mohamad during a visit there.

The Bakri group of companies is a privately owned Saudi-based shipping group, with a fleet of 16 chemical and product vessels, three storage barges and 18 utility vessels.