TAIF-NK Awards Malaysian KNM Group $100 mln Tender

Tatarstan oil-refining company TAIF-NK has awarded a $100 million tender to KNM Group Bhd, a Malaysian company that positions itself as a one-stop solution provider of process equipment and technology for the oil and gas sector.

KNM Group Bhd will be supplying a sulfur-recovery unit for the Heavy Residue Conversion Complex in Nizhenekamsk, Tatarstan, according to a statement released by the Malaysian company to Bursa Malaysia in February. The recovery unit is expected to take 28 months to complete. 

News of the contract prompted a frenzy of speculation on financial markets, with KNM Group Bhd’s stock price rising as much as by 1.1% following the announcement.

The announcement of this tender comes just over a month after a January visit to Malaysia by a Tatarstan delegation headed by President Rustam Minnihkanov to promote and expand relations in trade, investment, IT, biotechnology, and higher education between the two governments.

During that visit, the Tatarstan Investment Development Agency (TIDA) and Malaysian Ministry of Trade and Industry cohosted a Malaysian-Tatarstan Business Seminar, which included participation from President Minnikhanov and Malaysian Minister of Trade and Industry Dato’ Seri Mustapa Bin Mohamed. The seminar was attended by more than 130 Malaysian executives, including KNM Group Chairman Ir. Lee Swee Eng. Ir.

In the question and answer portion of the seminar, the KNM Group Chairman addressed a question to President Minnikhanov and informed him of the company’s expertise in the oil and gas industry. In response, President Minnikhanov encouraged the company to pursue opportunities in Tatarstan.

According to KNM Group Head of Corporate Strategy Michael Lee, this tender for TAIF-NK is an important first step for the Malaysian company into the Tatarstan market. “This project is a breakthrough for KNM in the Republic of Tatarstan,” he said. “We are extremely delighted that finally we secured the TAIF-NK project. Certainly, we believe your government has played a big part to foster business relations between Malaysia and Tatarstan.”

Several leading Russian and international companies, including WorleyParsons and Giprogazoochistak, competed in the tender, according to TAIF-NK head engineer Vladimir Grishin . Of all the applicants, KNG Group made an offer that best matched the needs and requirements of TAIF-NK. “The company has extensive experience in projects and in equipment supplying within the Russian Federation, meeting Russian project standards and certification,” he said.

Michael Lee concurred with this assessment. “KNM has executed numerous projects with the similar size and skills and our track records again help us to qualify for this tender,” he said. “KNM is truly a Malaysian champion whom is sought out for its oil and gas projects worldwide.”

The contract will only further the bilateral relationship between Malaysia and Tatarstan, Michael Lee added. “This will open up more opportunities for companies between the two countries to explore and conduct business, transfer of technology, and investment in the future,” he said.

This success story is but one of several developments in the growing bilateral relationship between Tatarstan and Malaysia that followed President Minnikhanov’s visit to Malaysia in January. Since then, Malaysian company XYBASE visited Tatarstan twice to do consultancy work on the implementation of an investment project monitoring system. A delegation from the Performance Management and Delivery Unit (PEMANDU) has also visited Tatarstan to share their experience in enforcing the implementation of Malaysia’s Economic Development Programme. Next week, a 19-person Tatarstan delegation headed by TIDA Chief Executive Linar Yakupov and including Aide to the President of Tatarstan Airat Nurutdinov, two deputy ministers, and heads of Tatarstan companies will return to Malaysia for a follow-up visit.