KUCHING: Reservoir Link Energy Bhd (RLEB) is set for regional expansion, particularly in key Middle East markets.
Datuk Tai Hee, RLEB’s chairman, said following RLEB’s recent acquisition of Propel Maxflo Sdn Bhd, the group is well positioned to pursue targeted regional expansion, especially in the oil-rich Middle East.
Propel Maxflo provides products and services for exploration, drilling and well intervention, enhanced well recovery and production technologies specifically for offshore and onshore oil and gas refining.
RLEB has signed a conditional share sale agreement with Propel Oilfield Services Sdn Bhd to acquire the remaining 70 per cent equity in Propel Maxflo for RM17.24 million, having earlier paid RM7.39 million for an initial 30 per cent stake that made it an associate company.
Tai said the acquisition unlocks opportunities for the group’s collaboration with global industry leaders, thereby enhancing its visibility, credibility and competitiveness in regional tenders.
“The Middle East markets offer compelling opportunities and align with our broader ambition to expand our existing geographical footprint.
“In the financial year ahead, we remain upbeat about the group’s growth prospects as we seek to deepen our strategic acquisition initiatives to drive long-term value creation,” he added in the company’s 2025 annual report.
On Malaysia’s oil and gas industry, Tai said heading towards 2026 and beyond, the industry is expected to experience a renewed sense of urgency in accelerating the energy transition while ensuring national energy security.
He said the industry continues to face a delicate balancing act in sustaining traditional hydrocarbon activities while gradually pivoting towards cleaner, low-carbon alternatives, with the upcoming wave of Plug & Abandonment (P&A) and decommissioning activities presenting a compelling growth avenue.
“With plans to execute the P&A of wells and the decommissioning of offshore facilities, the national decommissioning programme offers a robust pipeline of opportunities through 2026 and beyond.
“The group’s established capabilities align directly with the scope of these projects. Through strategic partnerships, we are further enhancing our competitive edge in securing and executing these high-value contracts,” added Tai.
Petronas’ Activity Outlook 2025-2027 reveals that some 153 wells from 37 offshore facilities and one onshore facility along the Sarawak-Sabah Gas Pipeline section running through Lawas, Limbang, Miri and Bintulu are to be decommissioned after the end of their productive operations, involving the permanent closure of the wells and removal of assets as approved or directed by Petronas, the national oil company.
RLEB, awarded an umbrella contract under Petronas’ integrated well continuity services covering well intervention, workover and abandonment, brings expertise in well-leak repair, perforation and well testing, providing critical solutions that safeguard well integrity and optimise production efficiency.
Awarded an umbrella contract under Petronas’ integrated well continuity services covering well intervention, workover and abandonment, RLEB brings expertise in well-leak repair, perforation and well testing to provide critical solutions that safeguard well integrity and optimise production efficiency.
“Within the spectrum of our core operations, the group remains confident in maintaining its sound performance in well services, sand management and production enhancement.
“These business lines continue to underpin our operational stability and financial performance. At the same time, we are actively exploring adjacent service lines to support broader energy security goals in line with industry shifts and customer demand,” said Tai.
He said the renewable energy business will remain the central pillar of the group’s long-term growth agenda, with plans to deepen its presence in the solar photovoltaic sector by leveraging its proven track record in commercial and industrial solar projects.
RLEB associate Founder Energy, listed on Nasdaq, specialises in implementing solar photovoltaic projects for large-scale, commercial, industrial and residential applications and serves as an engineering, procurement, construction and commissioning (EPCC) specialist for large-scale solar installations in Malaysia.
