RM3bil reclamation deal off Johor

The quiet town of Tanjung Piai where fishing is a main activity.

The quiet town of Tanjung Piai where fishing is a main activity.

 

OVER the week, Benalec Holdings Bhd has secured a major offtaker (a party taking up the offer) for 404.7ha of reclaimable land off Tanjung Piai, at the southern tip of Johor. Sources have estimated the value of the off-taking contract at RM2.5bil to RM3bil.

In an announcement to Bursa Malaysia, Benalec said its 70%-owned unit, Spektrum Kukuh Sdn Bhd (SKSB), had entered into a binding term sheet with the State Secretary, Johor (Inc) and 1MY Strategic Oil Terminal Sdn Bhd “to undertake the reclamation works and sale of about 404.7ha off the coast of Tanjung Piai for the purpose of constructing and operating a crude oil and petroleum storage facility together with a private jetty”.

1MY is a vehicle formed to construct, commission, operate and maintain an oil and petroleum storage facility at Tanjung Piai. A formal sales and purchase agreement (SPA) is to be executed within three months of the term sheet subject to finalisation of all the details.