Petronas Awards 15 Contracts to Local Fabricators for Malaysian Projects

Petronas has awarded 15 contracts for four of its upstream projects to five local fabricators.

The contracts, valued at more than RM2.8 billion, were awarded to Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), Sime Darby Engineering Sdn Bhd, Kencana HL Sdn Bhd, Ramunia Fabricators Sdn Bhd and Oilfab Sdn Bhd. The contracts were signed today at the Petronas headquarters in Kuala Lumpur.

Under the terms of the respective contracts, the five contractors will procure and construct various components of the facilities for the development of the Kumang Cluster Fields offshore Sarawak, the Tangga Barat Cluster Fields offshore Peninsular Malaysia, the Kinabalu Non-Associated Gas Fields offshore Sabah, and the enhancement of gas compression capacity at the producing Dulang Field offshore Terengganu.

MMHE, a subsidiary of MISC Bhd, was awarded two contracts valued at about RM1.17 billion to procure and construct a topside and a jacket for Tangga Barat project's central processing platform (CPP) and a topside for the Kinabalu project's CPP.

Sime Darby Engineering's three contracts, valued at about RM1.12 billion, encompasses the procurement and construction of two drilling platform's topsides each for the Kumang and Tangga Barat projects, a topside for Kumang project's CPP and a drilling platform jacket for the Kinabalu project.

The scope of work of Kencana HL, which was awarded three contracts valued at RM288 million, comprises the procurement and fabrication of two sets of drilling platform jackets and topsides each for the Tangga Barat and Kinabalu projects, and the provision of a unit of gas compression module for the Dulang Field.

Ramunia Fabricators will be responsible for the procurement and construction of a drilling platform jacket and a CPP jacket for the Kumang project, and a drilling platform jacket for the Tangga Barat project. The three contracts are valued at approximately RM140 million.

Oilfab Sdn Bhd, a subsidiary of Oilcorp Bhd, was awarded four contracts valued at RM102 million, for the procurement and construction of a drilling platform jacket, flare module and bridge for the Tangga Barat project, as well as a drilling platform jacket, flare module, bridge and tripod for the Kumang project.

When completed, the offshore facilities will boost Malaysia's gas production by 950 million standard cubic feet per day (mmscfd), which will enhance the security of supply to the domestic and export markets.

The award of the contracts to the Malaysian companies reflects Petronas' confidence and commitment in harnessing and nurturing the capability and expertise of homegrown fabricators in the oil and gas industry. The contracts are also expected to provide business opportunities to local subcontractors and service providers, exposing them to the projects that would help them build their own capability and expertise.



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