Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on January 15, 2020

KUALA LUMPUR: TH Heavy Engineering Bhd (THHE) has received the green light from Petroliam Nasional Bhd (Petronas) to supply certain products and services to oil and gas (O&G) companies in Malaysia, after a multiyear suspension due to non-performance in 2016.

In a filing yesterday, THHE said its wholly-owned unit THHE Fabricators Sdn Bhd (TFSB) has been awarded the Petronas licence for three categories: topside piping and structural, offshore facilities — major fabrication, and tank farms.

However, the approved licensed categories did not reinstate THHE as a main contractor of Petronas.

The duration of the licence is for a three-year period ending on Dec 23, 2022.

“With the newly approved licence, TFSB will now be eligible to be invited to bid for Petronas projects for the abovementioned categories,” said THHE.

THHE was previously excluded from participating in tenders by Petronas Carigali Sdn Bhd for a two-year period beginning April 1, 2016, due to performance-related issues pertaining to the execution of a project.

On July 9, 2017, it received another letter from Petronas excluding TFSB from participating in O&G projects as a main contractor, or to participate in any major fabrication works or engineering, procurement, construction, installation, or commissioning works.

Shares in THHE closed unchanged at 10 sen yesterday, giving the offshore fabricator a market capitalisation of RM112.13 million.

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