MMHE bags oil and gas contracts worth RM350 million

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KUALA LUMPUR (Nov 3): Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) has secured contracts for fabrication and other associated works for two exploration and production projects offshore Peninsular Malaysia worth RM350 million.

In a statement today, the marine and heavy engineering services provider said the first contract is for the fabrication of well head platform and its jacket, the connecting bridge, and heavier jacket for the central processing platform for the North Malay Basin (NMB) Bergading Complex.

According to the statement, MMHE will be the subcontractor for Hyundai Heavy Industries Co Ltd.

The total weight of these structural components under MMHE’s work scope is about 14,800 metric tonnes (MT), and they are scheduled for sail away and delivery to the project’s ultimate client, Hess E&P Malaysia BV, by 2016.

The NMB Bergading Complex is located offshore Peninsular Malaysia, in water depth of between 55 and 60 metres.

The second contract, meanwhile, is the procurement, construction, hook up and commissioning contract for the Besar–A well head platform and its jacket, as well as the associated host tie-in work for PETRONAS Carigali Sdn Bhd.

With total components weight of 5,100 MT, the project is scheduled to be completed towards the end of 2015.

The Besar field is located offshore 185 kilometres northeast of Kerteh in Terengganu, at a water depth of approximately 70 metres.

In a statement today, MMHE's Managing Director and Chief Executive Officer Dominique de Soras said these projects were awarded after competitive bidding among regional yards.

"The award of these projects is a reflection of MMHE’s improved competitiveness," he said, attributing this to a number of initiatives and stronger management focus on the offshore business segment.

“As oil and gas companies increasingly implement more stringent project evaluation threshold levels, every project awarded becomes critical in fulfilling the overall organisational objectives of our customer.

"So, we look forward to reciprocate the trust given to MMHE, by fulfilling our commitments and executing these projects effectively,” he added.

MMHE was up 2 sen or 0.88% to finish the mid day trading at RM2.29, with 209,700 units traded. Its market capitalization was RM3.66 billion.