Oiltek International has entered into a heads of agreement with Brunei-based Bioseaga Industries to build a US$350 million sustainable aviation fuel plant in Sabah. For context, Oiltek's entire order book as disclosed on Feb 23 was just RM350 million.
In addition, Oiltek will be the exclusive contractor for this project and may choose to take equity in the project down the road.
The plant has a planned capacity of approximately 300 metric tonnes per day.
The BioSeaga group specialises in the development of food security and renewable and sustainable fuel.
"The board is of the view that the project will enable the group to further deepen its participation in the rapidly expanding SAF value chain," reads Oiltek's SGX announcement on April 6.
The company describes this project as a "strategically significant opportunity" as well to deepen its position in the SAF value chain.
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"By acting as the exclusive contractor of the project, it reinforces the group’s credentials as one of the leading solutions providers in renewable fuels and sustainable energy infrastructure," the company adds.
Oiltek International shares closed at $1.55 on April 2, up 6.9%, extending a gain of 121.43% year to date.
