KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has secured an oil and gas contract from SapuraOMV Upstream (Sarawak) Inc.
MHB will undertake the engineering, procurement, construction, transportation and installation, and hook-up and commissioning services (EPCIC) for the SK408W Jerun development project, offshore Sarawak.
The EPCIC contract comprises the construction of a 15,000-tonne topside, 10,000-tonne jacket and 5,000-tonne piles of Central Processing Platform (CPP).
It also includes the design engineering of a 30-inch carbon steel pipeline with a length equivalent to 80 kilometres distance from the CPP to the existing E11R-B platform to commingle with the existing trunkline to Petronas Malaysia LNG Plant in Bintulu, Sarawak.
Upon completion, the facilities would be installed in Jerun gas field, which lies in the SK408W Block located offshore Bintulu, said MHB in a statement on Tuesday.
SapuraOMV Upstream is the operator of SK408W Block, with Sarawak Shell Bhd and Petronas Carigali Sdn Bhd holding 30 per cent stake each.
"This is indeed an acknowledgement of our technical competencies and commercial competitiveness in this industry and demonstrates MHB's capability in providing integrated and value-added solutions," said MHB managing director and chief executive officer Pandai Othman.
Pandai said the oil and gas industry was now getting back on an upturn after the slowdown in 2020 due to the low oil price and Covid-19 pandemic, resulting in capital expenditure cutback by oil and gas giants due to the uncertainties in the industry.
"2021 has been coined as our recovery year and what a better way to start it other than with a major EPCIC project like Jerun. With this being our first project with SapuraOMV, we hope this marks the beginning of a long-lasting business relationship and mutual support between the two companies." he added.