Tuesday 23 Apr 2024
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KUALA LUMPUR (July 25): Ranhill Utilities Bhd subsidiary Ranhill Worley Sdn Bhd (RWSB) will perform front end engineering design (FEED) for its related company for Petroliam Nasional Bhd (Petronas)'s Kasawari carbon capture and storage (CCS) project, billed as the world’s largest offshore CCS project.

Ranhill Utilities said that Perunding Ranhill Worley Sdn Bhd (PRW) — an engineering and design services provider for oil and gas facilities — was awarded the RM18 million contract from Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) on Feb 16.

"Duration of work is seven months with the winner of the FEED phase to be selected by Petronas at the end of 2022. If we are successful with our partner MMHE, detailed design would commence in early 2023," said Ranhill Utilities in its bourse filing on Bursa Malaysia on Monday (July 25).

The company elaborated that Kasawari CCS captures over three million tons of carbon dioxide per annum.

“The new CCS platform will be located next to the Kasawari Central Processing Facility (in the South China Sea off the coast of Sarawak in Malaysia) and linked via a bridge. The carbon dioxide will be transported by pipeline for 138 km and injected into a depleted offshore gas reservoir,” it said.

Ranhill Utilities said RWSB's scope include the carbon dioxide technology specification, evaluation and selection, along with design and engineering development for the platform, jacket, bridge and pipeline.

“The team's focus is on development of a well thought-out design solution that meets safety, operability and maintainability requirements while driving for reduced Total Installed Cost (TIC).

“The design will be enhanced through use of digital driven systems and tools including use of Advanced Work Packaging to provide optimal benefit to MMHE and Petronas Carigali Sdn Bhd."

Ranhill Utilities chairman and major shareholder Tan Sri Hamdan Mohamad is also the director and substantial shareholder of PRW.

The company notes that the provision of engineering services by RWSB to PRW for the project is a recurrent related party transaction (RRPT) which, according to the company, “is in the ordinary course of business and are on terms not more favourable to Tan Sri Hamdan Mohamad”.

Ranhill Utilities added that the project is expected to contribute positively to its revenue and earnings for the financial year ending Dec 31, 2022.

Ranhill Utilities had seen its net profit increase by 1% to RM7.38 million in the first quarter ended March 31, 2022 (1Q FY22). The group’s earnings dropped 19% to RM30.58 million in the financial year ended Dec 31, 2021 (FY21), compared with RM37.7 million a year ago.

Shares of Ranhill Utilities closed unchanged at 39 sen on Monday, giving it a market capitalisation of RM505.41 million.

Edited ByLiew Jia Teng
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