KUALA LUMPUR: KKB Engineering Bhd’s subsidiary OceanMight Sdn Bhd (OMSB) has secured a combined contracts of RM226 million from Petronas Carigali Sdn Bhd for the provision of engineering, procurement, construction, commissioning of Wellhead Platforms for D18 Phase Two project.
In an exchange filing today, KKB Engineering said the contract duration is about 27 months, in which 15 months are for work execution for D18 Phase Two project while the other 12 months are the warranty period.
The contract, which has commenced in July 2018, involved the engineering, procurement, construction, transportation, installation and commissioning of D18 JT-D Wellhead Platform.
The detailed scope of works is specified in the contract documentation between OMSB and Petronas Carigali.
The company said OMSB is an approved Petronas Licensed Company for Offshore Facilities Construction - Major Fabrication - Offshore Facilities.
“The contract will have no effect on the issued and paid-up capital of the company and is expected to contribute positively towards the earnings and net assets for the duration of the contract,” it said.
Among the risk factors affecting the award include execution risks such as changes in the basis of design, availability of skilled manpower, delays in material deliveries, changes in prices of material, changes in political, economic and regulatory conditions.