This article first appeared in The Edge Financial Daily on April 18, 2017 - April 24, 2017

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has won a RM1 billion contract to develop the central processing platform (CPP) for Petroliam Nasional Bhd’s (Petronas) Bokor phase 3 redevelopment project.

MHB said its wholly-owned subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd was awarded the engineering, procurement, construction, installation and commissioning contract by Petronas Carigali Sdn Bhd.

In a filing with Bursa Malaysia, MHB said the first steel cut is expected to commence in the third quarter of 2018 (3Q18), with the project scheduled to be completed in 2Q20.

Upon completion, the new CPP will be installed at the Bokor field in Baram Delta, off Sarawak, in a water depth of 70m.

“This project was awarded after going through [a competitive bidding process. Hence, the award of this project is a reflection of MHB’s improved competitiveness, thanks to a number of implemented cost-cutting strategies, efficiency initiatives, combined with strong management focus on the heavy engineering business,” the group said.

It added that the award is expected to contribute positively towards its future earnings. MHB’s share price settled 1.54% higher at 99 sen yesterday, valuing the group at RM1.58 billion.