The New Straits Times has reported Scomi is considering buying a majority stake in the Singapore-based Oiltools for RM300 million. The tranche currently belongs to British venture capital company 3i Plc.

If the report proves to be true, the reputed 70.9% stake that Scomi will purchase would allow the company to become an international player in the global oil and gas sector. It would also make Scomi the second largest integrated mud engineering service company. The unconfirmed heavyweight in this sector is the UK's Magcobar-Imco Drilling Fluids.

There is also a financial benefit for Scomi should the transaction take place. The group stands to double its revenue by the end of next year on the back of international business, up to 70% of business at current estimates once the business from Oiltools' 27 countries of operation is folded into the group.