Malaysia's offshore oil and gas facilities fabricator TH Heavy Engineering Berhad revealed Friday that it has received a Letter of Award from JX Nippon Oil & Gas Exploration (Malaysia) Limited May 9 to provide engineering, procurement, construction, installation and commissioning (EPCIC) and leasing of the floating production storage and offloading (FPSO) Deep Producer 1 for the Layang Development Project, located in Block SK10, offshore Sarawak, Malaysia, the firm announced on local stock exchange Bursa Malaysia.
Under the award, the contractor will carry out engineering, procurement, construction/fabrication/conversion, installation and hook-up and commissioning of the FPSO facilities. TH Heavy Engineering will then lease the FPSO facilities until Nov. 17, 2023, with JX Nippon given an option to extend the lease for one year up to a maximum period of 10 years from Nov. 18, 2023.
The award has an estimated contractual value of $372 million (MYR 1.2 billion) for the primary period and an additional potential of up to $457 million (MYR1.47 billion) if JX Nippon extends all options under the contract.
Floatech (L) Ltd, an 80 percent subsidiary of TH Heavy Engineering, owns FPSO Deep Producer 1.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
More from this Author
Most Popular Articles