TH Heavy Engineering Bags $372M Deal for Layang Project Off Sarawak
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.
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