KUALA LUMPUR (Dec 26): Malaysia Marine and Heavy Engineering Holdings Bhd's (MHB) unit, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), has via a consortium with TechnipFMC inked a long-term agreement (LTA) with Saudi Arabian Oil Company (Saudi Aramco).
In a statement today, MHB said the agreement, valid for six years with an option to extend for another six years, covers engineering, procurement, fabrication, transportation, and installation of offshore facilities in support of Saudi Aramco's Offshore Maintain Potential Program, and other works which will be executed within Saudi Arabia waters.
It said the agreement was signed during Saudi Aramco's In-Kingdom Total Value Add (IKTVA) Annual Forum in Dammam, Saudi Arabia on Nov 26, 2018.
In relation to the LTA, MMHE and its partner will be looking at certain scope to be performed in Saudi Arabia, supporting the ongoing Saudization initiative.
MHB managing director and chief executive officer Wan Mashitah Wan Abdullah Sani said the group's entry into Saudi Arabia marks a significant milestone for its heavy engineering segment.
"Fully leveraging on the core strengths of MMHE and TechnipFMC, we believe that the collaboration is another solid step in our constant drive to deliver the best to our customers," she said.
In the same statement, MHB said it has been awarded a contract for fabrication of the Pluto Water Handling Module from TechnipFMC.
Upon completion, the module will be installed on Woodside Energy Ltd's existing Pluto Alpha Gas Production Platform, located offshore Western Australia, it said.
MHB said the module is targeted for completion in fourth quarter of 2020.
At the midday break, MHB fell 2.94% or 1.5 sen with 49.5 sen with 61,900 shares traded.