Oilfab Completes Load Out of CPOC Topsides, Jackets

Oilfab, a subsidiary of Oilcorp Berhad, has successfully completed the load out of the CPOC topsides and jackets. This is the last series of four offshore platforms for its client, Petronas Carigali – PTTEPI Operating Company (CPOC). The load out activities and sail-away for the structures were done at Oilfab's Pulau Indah Fabrication Yard under good weather conditions. The structures are destined for the Malaysia-Thailand Joint Development Area (JDA), off the coast of Kelantan.

The RM 300-million project was awarded by CPOC in August 2007 for the provision of Engineering, Procurement, Construction and Commissioning (EPCC) for Muda A (MDA), Muda B (MDB), Muda C (MDC) and Jenka A, (JKA) platforms. The project has met with many successes in proving its capabilities to manage and complete the eight (8) structures.

The MDA, MDB, MDC and JKA are all unmanned wellhead drilling platform with 16-20 well. Each platform is supported by four (4) legged Jacket with the average water depth of 60m. The total fabrication tonnage for these platforms is about 6,000 MT.

"Our experienced project management team worked extremely hard to ensure its successful and timely completion progress for all the platforms," Dato' Mohamed Hazali said. "We are also pleased with the expected results as our bulkhead easily accommodated to the weight and size of the structures, as it can support a substantial capacity of up to 2,500MT."

All the jackets and topsides were transported from the bulkhead to the barges by wheeled boogies.

Last month, Oilfab was also awarded its first Petronas Carigali project valued at RM102 million. The work expected for the two projects consist of the Integrated Procurement and Construction (PC) of LAHO (LHDP-A) Drilling Platform Jacket for Tangga Barat Development Project (Phase 1) and Integrated Procurement and Construction (PC) of Tangga Barat Flare Platform (TBFB-A) and Bridges for Tangga Barat Cluster Development Project (Phase 1).

The timeline for the project is for 13 months for the Tangga Barat Project and the Kumang Cluster Project. Both projects have simultaneously commerce at Oilfab's Pulau Indah fabrication centre in late-September 2008 and are expected to be completed in October 2009.

"Carigali has faith in our yard facility," said Oilfab's CEO and Managing Director, Dato' Mohamed Hazali bin Tan Sri Abu Hassan. "Most importantly in our total project management in addition to a well-qualified construction staff and all equipment necessary to complete a project on time and on budget."

The projects would include constructing the Tangga Barat Flare Tripod and Connecting Bridges, Kumang F9JT-A Jacket, and the Kumang KAV-A Flare Platform and Bridge.

In July 2007, Oilfab had completed a RM40-million project with Newfield Peninsular Malaysia Inc for the provision of Engineering, Procurement and Construction (EPC) for the Chermingat-A platform. The platform, weighing at 1,564 Metric Tons (MT), is operated by Newfield and co-owned by Petronas Carigali Sdn. Bhd.
This was a crucial springboard for the company as it was Oilfab's first major project related to the fabrication of offshore structures. It was also the first offshore fabrication project in Selangor.

Dato' Hazali said that the company is in the midst of upgrading its fabrication yard with the necessary facilities, based on the prospects of future projects.

"As part of Oilfab's long-term strategic planning, we have embarked on further improving its yard infrastructure and facilities to meet the growing demands of offshore structures," he continued. "We have spent more than RM20 million for our phase two development."

The extension of its bulkhead and seawall are seen as a crucial management commitment so as to be able to accommodate larger structures in the future. He added that the phase two will be fully operational by early 2009 and this will enable us to construct structures more than 10,000 metric ton.

With the completion of this improvement to its capabilities, Oilfab will be able to meet the high demand of the industry, especially amongst the international oil major. Within the company's medium-term plans, industry analysts expects the strengthening of the yard would facilitate more projects opportunities, especially since the fabrication industry will be flourishing for the next 5 to 10 years.

The Tangga Barat, Kumang Cluster, CPOC and Chermingat-A projects represent another series of milestone for Oilfab as they assume a more prominent role in the local and international fabrication industry. The advancement of facilities is seen as timely and essential for the effective completion of the projects.

Oilfab has acquired favorable ratings from Petronas, which assessed the capacity and capabilities of its yard. In addition to the traditional production facilities at the yard, Oilfab's construction expertise extends to loading facilities, heavy lift services and the covered fabrication areas.

On another note, Dato' Mohamed Hazali informed that Oilfab was awarded by Petronas Carigali the Zero TRCF (Total Recordable Case Frequency) for it's Health & Safety aspects. This recognition, he said, awarded in early 2008 had shown that Oilfab is fully committed to comply with the industry's HSE (Health, Safety & Environment) regulations.

"Oilfab aspires to distinctively serve our clients through a great business and our highest priority for safety," Dato' Hazali said. "I am proud to announce that we have achieved stringent HSE standards and practices, the outcome being 1.7 million man-hours without LTI.

Oilfab is exploring business opportunities in the Middle East. In September, the company signed a MOU with Saudi Arabia's Raffid Group. The partnership would facilitate Oilfab's entry into the Middle East and developing projects. It is also looking to pursue a country office in Saudi Arabia.

"The prospects of business development in the Middle East, we also seek to aggressively build ventures in South East Asia," said Dato' Mohamed Hazali. "With the increase of the global oil exploration activities, there would be many fabrication jobs set by oil majors."



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