Sukimi to Build RM300m Oil Terminal in Kelantan

Sukimi to Build RM300m Oil Terminal in Kelantan
Posted on: Tuesday, 8 July 2008, 00:00 CDT

By Sulaiman Jaafar

INTEGRATED petroleum company the Sukimi Group of Companies (Sukimi) will build Kelantan's first independent oil terminal at Pantai Senok in Bachok at a cost of about RM300 million.

Construction of the terminal, which can accommodate 12 million litres of fuel at a single time, is expected to take off early next year and will be fully operational by 2010.

Sukimi president Datuk Ahmad Sukimi Ibrahim said a memorandum of understanding for the project would be signed by the company and state-owned Perba-danan Menteri Besar Kelantan Bhd next week.

Founded in 1997, the group which has its headquarters in Kota Baru, is involved in oil and gas exploration and production, oil refining, marketing of petroleum products, trading, petrochemical manufacturing and logistics and marine, among others.

Ahmad Sukimi said group turnover for last year was RM300 million and expected to go up to RM500 million this year and more than RM1 billion next year.

"Besides generating the local economy, the oil terminal will turn Kelantan into a hub for petroleum distribution in the east coast and southern Thailand.

"Multinational petroleum companies like ExxonMobil, Shell and Caltex have also agreed in principle to use our facilities for the distribution of their products in Kelantan," he told a press conference yesterday.

Ahmad Sukimi said the first phase, covering about eight hectares, involved the construction of a jetty, storage tank and distribution pipes which is expected to cost about RM50 million.

The second phase costing RM250 million involved a refinery and facilities for multi-national companies.

He said the land for the entire project was on a 800 hectare site previously allocated by the state government for a joint venture between state subsidiary KelOil Sdn Bhd and KUB Bhd which failed to take off.

"We are confident that we will be able to carry out the project as the funds are all ready. We expect to start the land acquisition by August followed by groundworks before it starts early next year," he said.

Ahmad Sukimi said it was expected to employ about 2,000 people once the whole project was completed.

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Source: New Straits Times