SAAG inks overseas ties

SAAG RR Infra, the Indian subsidiary of Malaysia's SAAG Consolidated, has entered India's growing oil and gas infrastructure market by roping in companies from Europe and Australia with the track record to "front" for it.

Managing director R Sriram said the Malaysian parenta had tied up with companies abroad which have the experience to take part in oil and gas projects. The experience brought in by partners is needed by SAAG to meet the qualifications to make bids in India.

SAAG, in association with the Czech company Plynostav, has bid for some oil and gas pipeline projects. Sriram estimated the size of the projects to be about Rs 9,000 crore to Rs 10,000 crore to lay pipes that would finally span 18,000 kms.

Plynostav has the track-record to qualify for tenders that are put out for projects, and fronts for SAAG in the bidding, Sriram said. Plynostav would follow up with technological, select skilled manpower and equipment support, Sriram added.

SAAG would mix Plynostav's contribution with local resources to make the project work cost competitive. SAAG and Plynostav have submitted papers for three projects.

Sriram declined to disclose details as the tender process had not yet been finished.

SAAG has also begun to look for consultancy projects in the oil and gas field in association with Netherland's Focus Oil and Gas. Sriram said the partners have begun talking to ONGC about consultancy services.

SAAG's focus on the oil and gas infrastructure projects has come in the wake of the Malaysian parent increasing its equity holding. The parent increased its holding from 24.52 per cent to 59.47 per cent in 2004-05.

SAAG, which registered a turnover of Rs 16 crore in 2004-05, has sharpened focus on the oil and gas sector after having concentrated on housing construction projects earlier.