KUALA LUMPUR (Oct 11): Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has secured an engineering, procurement and construction (EPC) services contract from Sarawak Shell Bhd relating to an offshore platform for the Rosmari-Marjoram gas project, located off the coast of Sarawak.
The works comprise the construction of a wellhead platform, a topside, and a four-legged jacket, according to MHB in a bourse filing on Tuesday (Oct 11).
MHB said its wholly-owned and major subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd had received a letter of award dated Sept 21 from Sarawak Shell to undertake the project for a duration of 19 months.
The company said the value of the contract is approximately less than half a billion ringgit.
In a separate statement, MHB noted that the unmanned platform will be installed at a water depth of 140 metres within the SK318 area, off the coast of Bintulu, Sarawak upon completion, which will be primarily powered by renewable energy, where it will utilise power from solar panels.
The Rosmari-Marjoram gas project is currently undertaken by Sarawak Shell (the operator of the SK318 Block) and Petronas Carigali Sdn Bhd.
With a design life of 20 years, it will cater for up to 800 million standard cubic feet of gas per day, with start-up targeted in 2026 supplying natural gas to the Petronas LNG Complex in Bintulu, Sarawak.
“With the announcement of the final investment decision by Sarawak Shell for the project on Sept 5, followed by the award of this contract to MHB, it also indicates the beginning of the revitalisation of the oil and gas industry in Malaysia that has long been impeded — due to the pandemic and economic slowdown causing oil and gas developers to be more cautious in their capital expenditure spending on new developments,” said MHB managing director and chief executive officer Pandai Othman.
Pandai added that MHB had already begun its sustainability journey by integrating sustainable practices into the group’s business and decision-making to ensure that it operates responsibly.
“This project will further intensify our aspiration to support all our stakeholders, in particular Shell and Petronas (Petroliam Nasional Bhd), towards materialising their net zero carbon emission agenda.
“Apart from our ultimate aim to deliver this project safely and timely, we are pleased to say that this project is aligned with our commitment to providing cleaner energy solutions through the utilisation of renewable energy to power the platform,” he said.
At noon break, MHB was 1.27% or half a sen lower at 39 sen, bringing a market capitalisation of RM624 million.