TPP not related to Tan Sri Syed Mokhtar Al-Bukhary

My previous post Oil refinery and Electrical home appliance stated that the US$7bil Trans-Peninsula pipeline (Transpen) was awarded to Tan Sri Syed Mokhtar Al-Bukhary's SKS Development Sdn Bhd. This was followed by a special exclusive report by Nanyang one week after my post stating a similar claim.

However, last weeks, two ex-engineer with Petronas,Rahim Kamil Sulaiman (left) and Syed Izhar Al-Idrus (Right) claim the idea of the US$7bil pipeline was theirs but along the way the Government had also received two other proposals to build a similar pipeline connecting the west to east of Peninsular Malaysia.

One was from UEM World Bhd and the other the widely publicised SKS Development Sdn Bhd (a private company linked to Tan Sri Syed Mokhtar Al-Bukhary) that has an arrangement with the Iranian National Oil Co.

Rahim dismissed speculation that SKS and TPP were working together on the project.
“We have no relation with SKS by equity or contract in any form. If anyone claims this, we would be very keen to see the evidence.” reported The Star.

Rahim Kamil Sulaiman 53 and Syed Izhar Al-Idrus hold 50:50 equity interest in Trans-Peninsula Petroleum Sdn Bhd (TPP), the promoter and developer of the project, while former Kedah Mentri Besar Tan Sri Osman Aroff is a director in the company.

TPP has cleverly roped in big names such as Ranhill Bhd to carry out the construction and engineering, Saudi Arabia’s Al-Banader International Group to supply the oil and Middle Eastern investors to take up stakes in TPP, Indonesia’s Bakrie & Brothers tbk for pipe supply and PT Tripatra as its project manager.

Non of Malaysian pipe manufacturing company benefit from that project, including Wa Seong.

Ranhill shares price has rise before the announcement. As both promoter was not running a conglomerate company like Syed Mokhtar. It is difficult to demand them to invest their profit into other project like electical home appliance as they do not have the resources and skill to do it.

Update: SKS Development Sdn Bhd (a private company linked to Tan Sri Syed Mokhtar Al-Bukhary) still get the refinery portion of the project but not the pipeline

TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion finance Shares Stock Market klse