Malay's role in forging Middle East ties
Tuesday, 1 January 2008
John Burton
THE signing of a big Iranian gas development project involving Syed Mokhtar al-Burkary underscores the role that the influential Malaysian billionaire is playing in helping his country forge business ties with the Middle East.
Mr Syed Mokhtar, who has built a logistics and energy business empire in Malaysia, has been active this year with investments in Iran and Saudi Arabia, while wooing money from the Middle East to construct an oil pipeline across Malaysia.
The tycoon's privately held SKS Ventures signed a $6bn deal late last month to develop the Golshan and Ferdows offshore gas fields in co-operation with Iran's Pars Oil and Gas Company. A second part of the deal to build plants worth $10bn to produce liquefied natural gas is set to be signed soon.
Malaysia's MMC, a listed company controlled by Mr Syed Mokhtar, is building a $30bn industrial city in Saudi Arabia in co-operation with the Saudi Binladen group. The plans include the construction of a $3.0bn aluminium plant that is expected to be used by the Aluminium Corp of China.
The deals come as Mr Syed Mokhtar seeks help from the Middle East to support his long-term goal of making Malaysia a regional energy and logistics centre to compete against Singapore in south-east Asia.
It was Mr Syed Mokhtar's vision that helped him gain the backing of Mahathir Mohamad, the former Malaysian prime minister, as he ex-panded his businesses in Malaysia in the 1990s. He was given the concession to build and operate the port of Tanjung Pelepas to compete against Singapore's nearby port facilities. Mr Syed Mokhtar also acquired Malakoff, which operates power plants. The companies are grouped under MMC, in which he controls a 52 per cent stake.
MMC has a 42 per cent stake in Gas Malaysia, which supplies natural gas and LNG to domestic customers. The Iranian gas development project is seen as benefiting Gas Malaysia. But Mr Syed Mokhtar's investments in Iran could also strengthen Tehran's support for his planned trans-Malaysia oil pipeline.
The proposed $7.5bn pipeline would stretch across the northern peninsula and would offer an alternative route to the Strait of Malacca, from which Singapore benefits. Singapore has built a large oil storage and refining industry there. Supporters of the plan say that the pipeline would save three days of transit time and reduce transport costs.
The pipeline would be partly financed by SKS Ventures in co-operation with local state governments and foreign investors, possibly some from Iran, Saudi Arabia and China. Iran is seen as particularly interested in the pipeline as it would bypass Singapore, a strong US ally. The plans include building an oil refinery at one end of the pipeline to process Iranian crude for export.
.............................
Under syndication
arrangement with FE
THE signing of a big Iranian gas development project involving Syed Mokhtar al-Burkary underscores the role that the influential Malaysian billionaire is playing in helping his country forge business ties with the Middle East.
Mr Syed Mokhtar, who has built a logistics and energy business empire in Malaysia, has been active this year with investments in Iran and Saudi Arabia, while wooing money from the Middle East to construct an oil pipeline across Malaysia.
The tycoon's privately held SKS Ventures signed a $6bn deal late last month to develop the Golshan and Ferdows offshore gas fields in co-operation with Iran's Pars Oil and Gas Company. A second part of the deal to build plants worth $10bn to produce liquefied natural gas is set to be signed soon.
Malaysia's MMC, a listed company controlled by Mr Syed Mokhtar, is building a $30bn industrial city in Saudi Arabia in co-operation with the Saudi Binladen group. The plans include the construction of a $3.0bn aluminium plant that is expected to be used by the Aluminium Corp of China.
The deals come as Mr Syed Mokhtar seeks help from the Middle East to support his long-term goal of making Malaysia a regional energy and logistics centre to compete against Singapore in south-east Asia.
It was Mr Syed Mokhtar's vision that helped him gain the backing of Mahathir Mohamad, the former Malaysian prime minister, as he ex-panded his businesses in Malaysia in the 1990s. He was given the concession to build and operate the port of Tanjung Pelepas to compete against Singapore's nearby port facilities. Mr Syed Mokhtar also acquired Malakoff, which operates power plants. The companies are grouped under MMC, in which he controls a 52 per cent stake.
MMC has a 42 per cent stake in Gas Malaysia, which supplies natural gas and LNG to domestic customers. The Iranian gas development project is seen as benefiting Gas Malaysia. But Mr Syed Mokhtar's investments in Iran could also strengthen Tehran's support for his planned trans-Malaysia oil pipeline.
The proposed $7.5bn pipeline would stretch across the northern peninsula and would offer an alternative route to the Strait of Malacca, from which Singapore benefits. Singapore has built a large oil storage and refining industry there. Supporters of the plan say that the pipeline would save three days of transit time and reduce transport costs.
The pipeline would be partly financed by SKS Ventures in co-operation with local state governments and foreign investors, possibly some from Iran, Saudi Arabia and China. Iran is seen as particularly interested in the pipeline as it would bypass Singapore, a strong US ally. The plans include building an oil refinery at one end of the pipeline to process Iranian crude for export.
.............................
Under syndication
arrangement with FE