Under a memorandum of understanding, the new company, yet to be named, will be incorporated in Malaysia.

AWT said it will combine the Western Australian company’s well construction and field refurbishment capabilities with Petra’s maintenance, procurement, fabrication, installation and production facility commissioning capabilities.

“Following several years of successful collaboration between the two companies on field review and development projects, the closer incorporated engagement will expand the provision of field development-refurbishment planning and implementation services throughout Malaysia and the greater Asian region,” AWT said yesterday.

“The companies will seek to expand on existing contractual relationships to deliver simultaneous well and reservoir refurbishment, concurrent with facility operations, maintenance and refurbishment activities.”

AWT managing director Cameron Manifold described the establishment of the new company as a significant step forward in consolidating his firm’s strategic position in South-East Asia.

"Petra has proven to be an excellent business partner, providing us with access to a unique fleet of state-of-the-art O&M crane barge units, related support vessels and engineering services,” he said.

“Formation of this jointly owned company consolidates our relationship and is critical to enabling effective implementation of innovative field development and field refurbishment solutions for our clients."

Petra Energy executive chairman Tengku Dato’ Ibrahim Petra said his company’s expansion into oil well activities to include field development and refurbishment services is part of a strategic expansion into sub-surface activities.