ASSAR Chemicals Sdn. Bhd.

ASSAR CHEMICALS SDN BHD (ACSB) was incorporated in 1997 to undertake the construction of an Independent Oil Terminal (IOT) in Senari, Kuching, Sarawak. The IOT facility provides a centralised or common-user facility for storage and distribution of bulk petroleum and its related products to Users within Kuching area and southern Sarawak. In 2002, ACSB had signed 30 years User Agreement (UA) with Petronas Dagangan Berhad (PDB) and Shell Timur Sdn Bhd (STSB) for the utilisation of the IOT. Construction of the IOT (including the jetty) was completed at a total cost of RM163 million as scheduled and without incurring any cost overruns, and handed over to IOT Management Sdn Bhd (IOTM), the operator of the IOT, on December 28, 2006. Subsequently, operation began on January 1, 2007 and it reached full commercial operations on 1st April 2007.

This centralised facility or "common-user" facility comprises, amongst others, a bulk oil terminal and a liquefied petroleum gas (LPG) terminal. The IOT is designed to handle a throughput of up to 1,100,000 kilolitres of petroleum and related products annually. For bulk petroleum products, the facilities include receiving, storing and distributing bulk petroleum products. Meanwhile, the LPG facilities include facilities for receipt, storage, bottling and reconditioning of valves and cylinders and refilling of bottled and bulk LPG.

The bulk terminal consists of seven dedicated fuel storage tanks to receive petroleum products from vessels harbouring at the Oil, Gas and Chemicals (OGC) jetty. The LPG terminal has two dedicated storage tanks to store LPG transferred from LPG vessels. The OGC jetty consists of two berths which are able to handle vessels of up to 20,000 deadweight tonnage. Marine hoses at Berth 1 are dedicated for unloading diesel, unleaded gasoline and DPK products, whilst Berth 2 is solely dedicated for LPG products.

IOT is the first automated terminal facility in Sarawak. The present configuration of its tank farm

	2x DPK tanks with capacity volume 9,114 m3
	2x Diesel tanks with capacity volume 30,643 m3
	1x ULG 92 tanks with capacity volume 4,630 m3
	2x ULG 97 tanks with capacity volume 14,369 m3
	2x LPG spherical tanks with volume capacity 4,558 m3

In view of substantial cost savings to be derived from the use of IOT through economies of scale, PDB and STSB and Assar Senari Sdn Bhd (ASSB) formed a joint venture company, IOTM, to operate and manage the IOT.

ACSB is wholly-owned by ASSB, an investment holding vehicle which is 80% owned by Assar Senari Holdings Sdn Bhd and 20% owned by Yayasan Sarawak, a Sarawak state-owned agency. Assar Senari group is principally involved in the oil and gas, petrochemical and oleo chemicals-related industry.

Malaysian Rating Corporation Berhad (MARC) has reaffirmed its long-term rating on the Independent Oil Terminal (IOT) owner, ASSAR CHEMICALS Sdn Bhd (ACSB) RM150 million Serial Sukuk Musyarakah (Sukuk) at AAAIS on April 24, 2009.