KUALA LUMPUR (Feb 13): A subsidiary of Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has obtained a contract worth about RM1.4 billion to undertake the engineering, procurement, construction and installation (EPCI) of five wellhead platforms in the Malaysia-Thailand Joint Development Area (MTJDA).
The group’s wholly-owned subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) received the letter of award dated Feb 2 from Carigali-PTTEPI Operating Company Sdn Bhd (CPOC), MHB said in a bourse filing on Monday (Feb 13).
CPOC is the operator of PC JDA Ltd, a subsidiary of Petronas Carigali Sdn Bhd and PTTEP International Ltd (PTTEPI). Petronas Carigali is a unit of Petroliam Nasional Bhd (Petronas), while PTTEPI is a wholly-owned subsidiary of Thailand’s PTT Exploration and Production Public Company Ltd (PTTEP).
The scope of work includes EPCI of five wellhead platforms weighing an average of 2,000 metric tons, namely Andalas-C, Andalas-D, Andalas-E, Jengka-C and Jengka-D, and works on associated subsea pipelines and the telecommunications upgrade of the joint development area field development project (Phase 6), MHB said.
“Once completed, the platforms will be installed at a water depth ranging between 55 metres and 65 metres, in the area under B-17-01 south of the Gulf of Thailand, off the coasts of Thailand and Malaysia,” it said in a separate statement on Monday.
The MTJDA is an area of an overlapping continental shelf claimed by both Malaysia and Thailand, located offshore about 150km from Kota Bharu and 260km from Songkhla in the Gulf of Thailand.
This area was agreed by the governments of Malaysia and Thailand in 1979 to be jointly explored and exploited for non-living natural resources for the mutual and equal benefits of the two countries.
MHB said that the 22-month contract is expected to contribute positively to earnings and net assets per share of the group for the financial year ending Dec 31, 2023 onwards until the completion of the contract.
The energy and marine solutions provider’s managing director and chief executive officer Pandai Othman said the project was competitively tendered among a number of prominent regional players.
“This is our third major win after having won two projects within the last one-year period, namely the Rosmari-Marjoram and Kasawari carbon capture and storage (CCS) projects from Shell and Petronas respectively,” he said.
“These new developments signify the recovery of the oil and gas industry in the region after a period of slowdown due to the pandemic. We are prepared for a busy time ahead for the industry by reactivating the East Yard as a prompt and ready response for upcoming demand.”
Pandai added that MHB is honoured to contribute to the success of lasting diplomatic ties between Thailand and Malaysia.
The value of the Rosmari-Marjoram contract is approximately less than half a billion ringgit, while the Kasawari CSS contract is worth RM4.5 billion, MHB announced previously.
At Monday’s noon break, MHB’s share price had risen half a sen or 0.71% to 71 sen, bringing it a market capitalisation of RM1.13 billion.