KUALA LUMPUR (Feb 6): Enra Group Bhd says its new joint venture (JV) with Australia's Icon Engineering Pty Ltd will focus on offering cost cutting oilfield services.

It said the JV company, Enra Icon Sdn Bhd, will target undeveloped Asian oil and gas fields using Icon Engineering's range of minimal facility, well head platforms and self-installing production facilities.

Enra president and group chief executive office Datuk Mazlin Junid said the very challenging low oil price environment presents opportunities for major oil players in Malaysia to re-think and re-calibrate their minds to look for unconventional solutions for conventional problems.

He said the partnership with Icon Engineering is intended to bring forth to these players out-of-the-box ideas which the Perth-based company has successfully proven in its 20-year track record.

"We are excited about the prospects of changing mindsets to be nimble and effective in order to make oil and gas production profitable again," he said in a statement today.

The statement said Enra Icon will focus on innovative solutions that will significantly reduce the total costs of most shallow water field developments.

"ICON's (Icon Engineering's) SRIP design range for well head platforms provides significant reductions in engineering, procurement, construction and commissioning cost by adopting standardisation, plus significant reductions in offshore installation cost by utilising relocatable suction piled foundations, rig-install options and light weight," it added.

Icon Engineering managing director David Field said the JV will offer a range of proven facilities designs that can significantly reduce the upfront capex and risk for Malaysian and Southeast Asian field developments.

"Partnering with Enra provides balance sheet strength to allow leased, relocatable solutions.

"Enra brings critical local content and relationships, and its team has awesome reputations and track records. Icon (Engineering) will add our 20+ year experience and technical know-how in successfully executing projects in Malaysia and elsewhere," he said.

Enra had announced the formation of the JV on Jan 5, between its unit Enra Oil & Gas Services Sdn Bhd (EOGS) and Icon Engineering's unit Icon Oilfield Solutions Sdn Bhd.

EOGS has a 70% stake in the JV, while Icon Oilfield holds the remaining 30%.

At 4.07pm today, Enra shares were up 7 sen (3%) at RM2.40, giving it a market capitalisation of RM326.5 million.