KUALA LUMPUR (April 13): Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) said its unit has secured a contract to undertake the engineering, procurement, construction, transportation and installation, and hook-up and commissioning services (EPCIC) for the Jerun gas field, located offshore Sarawak.
Wholly-owned Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) bagged the contract from SapuraOMV Upstream Inc, the group said in a statement today.
MHB said the EPCIC contract comprises the construction of a 15,000-tonne topside, 10,000-tonne jacket and 5,000-tonne piles of central processing platform (CPP).
“It [the contract] also includes the design engineering of a 30-inch carbon steel pipeline with a length equivalent to 80km distance from this CPP to the existing E11R-B platform to commingle with the existing trunkline to Petronas Malaysia LNG Plant in Bintulu,” said the group.
Upon completion, the facilities will be installed in the Jerun gas field, which lies in the SK408W block, off the coast of Bintulu.
SapuraOMV Upstream (Sarawak) Inc is the operator of the SK408W block, with Sarawak Shell Berhad and Petronas Carigali Sdn Bhd holding 30% equity interest, each.
MHB managing director and CEO Pandai Othman said the contract demonstrates MHB’s capability in providing integrated value-added solutions.
“Backed by our skilled, experienced and passionate workforce, we are fully committed to deliver this project safely, timely and meeting the stringent quality requirements of the client.
“As I have mentioned before, the industry is now getting back on an upturn after the slowdown in 2020 due to the low oil price and Covid-19 pandemic, resulting in capex [capital expenditure] cutback by oil and gas giants due to the uncertainties in the industry. 2021 has been coined as our recovery year and what a better way to start it other than with a major EPCIC project like Jerun.
“With this being our first project with SapuraOMV, we hope this marks the beginning of a long-lasting business relationship and mutual support between the two companies,” he added.
MHB's share price fell 1.5 sen or 2.46% to 59.5 sen, giving the group a market capitalisation of RM952 million. The counter saw some 1.59 million shares traded.