KUALA TERENGGANU: Kencana Petroleum Bhd plans to set up operations in Terengganu in view of the potential growth of the state’s oil and gas industry.

As a start, the company would use the service of a RM46mil vessel to operate in nearby South China Sea, said group chief executive officer Datuk Mokhzani Mahathir.

“The group sees South China Sea, especially Terengganu waters that already have the oil and gas industry for a long time, having the potential to expand further in the future.

“In collaboration with the parther here, we will try to invest in Terengganu and in border areas with Thailand in the industry. At the same time, we are also looking for a site to set foot in the oil and gas industry in Kemaman,” he said.

He was speaking to reporters after the launch of vessel KPV Kapas by Tengku Ampuan Besar of Terengganu, Tengku Ampuan Bariah, yesterday.

Present was Terengganu Mentri Besar Datuk Ahmad Said and wife Toh Puan Norliza Mahmud.

The 60m-long KPV Kapas, powered by a 5,220 horsepower engine, is Kencana’s first vessel that can be used to support various oil and gas operations.

The Port Klang-registered vessel was completed on Oct 28 last year.

Mokhzani said the group, previously active in the West Coast of Peninsular Malaysia, planned to acquire several vessels for future works in the oil and gas industry in the South China Sea.

The group would look at the ship and boat building industry in Terengganu before making the order, he added.