Dagang NeXchange Bhd (DNeX) is expanding its presence in the upstream oil and gas sector with a 20% equity stake in a joint venture formed with Terengganu Inc’s energy arm, TI Petroleum Sdn Bhd.
In a statement, the group said its subsidiary, Ping Petroleum Ltd, will hold the stake in the joint-venture company, TI Exploration & Production Sdn Bhd (TI EP). The financial details of the investment were not disclosed.
TI Petroleum is the energy arm of Terengganu Inc Sdn Bhd, while TI EP is a joint venture established by TI Petroleum and Ping Petroleum to pursue oil and gas exploration and production activities.
DNeX said the acquisition supports its strategy to grow its energy business and strengthen its portfolio in regional upstream opportunities.
The partnership also provides Ping Petroleum, which is already active in Terengganu through the redevelopment of the Abu Cluster, with a platform to further expand its participation in Malaysia’s upstream sector alongside a partner with strong local regulatory and supply chain experience.
The company added that the collaboration is expected to create synergies through Terengganu Inc’s role as a state investment holding company managing commercial and strategic assets on behalf of the state government.
DNeX chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the partnership combines technical expertise with strategic positioning to unlock near-term opportunities while building a stronger foundation for long-term growth in Malaysia’s upstream energy sector.
On the market front, DNeX shares rose 2.5 sen or 8.2% to close at 33 sen, giving the group a market capitalisation of approximately RM1.15 billion.
