Oiltek International Limited: Update on Proposed Partnership in Indonesia

Oiltek International Limited has provided an update regarding its previously announced Heads of Agreement (HOA) for a proposed partnership with PT Kilang Pertamina Internasional. The original intention was to jointly develop a pre-treatment unit (“PTU”) and secure feedstock supply for the PTU in Indonesia. This partnership was viewed as a strategic opportunity to expand Oiltek’s presence in the region and tap into Indonesia’s growing demand for advanced oil processing technologies.

Key Points for Investors

• HOA Expiry: Despite ongoing discussions, Oiltek and its counterpart have not concluded a definitive agreement within the validity period of the HOA. As a result, the HOA has officially expired.
• No Material Financial Impact: The Board has stated that the expiry of the HOA is not expected to materially affect the Group’s earnings per share or net tangible assets per share for the current financial year ending 31 December 2026.
• Strategic Implications: The expiration of this agreement may indicate challenges in progressing such strategic partnerships in Indonesia. Investors looking for catalysts from this partnership should note that there will be no immediate contribution to Oiltek’s project pipeline or financial results from this initiative.

Potential Impact on Share Price

While the expiry of the HOA does not have a direct financial impact, it removes a potential growth catalyst for Oiltek International Limited. Investors who had anticipated positive developments from the proposed partnership should adjust their expectations accordingly. The lack of a material effect on financials reduces downside risk, but also means there is no positive surprise to drive share price appreciation. This update may dampen sentiment among those hoping for expansion in Indonesia, but is unlikely to result in significant share price movement unless further strategic developments are announced.

Other Important Information

• Ongoing Engagements: The Board notes the parties had continued discussions but were unable to reach a definitive agreement.
• Corporate Governance: The update was signed by Mr. Henry Yong Khai Weng, Executive Director and Chief Executive Officer, reaffirming the company’s commitment to transparent communication with shareholders.

Summary for Shareholders

The expiration of the HOA should not affect Oiltek’s current financial performance, but shareholders should be aware that the anticipated Indonesian partnership will not proceed in its current form. Oiltek remains open to future strategic opportunities, but this particular project will not contribute to near-term earnings or asset growth.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with professional advisors before making any investment decisions. The information provided is based on the latest company disclosures as of 6 April 2026.