KUALA LUMPUR (Feb 5): Coastal Contracts Bhd’s 50%-owned joint venture (JV) has secured a contract extension for the provision of gas sweetening services in Mexico from state-owned oil company Petroleos Mexicanos (Pemex) to end-2025.
The maximum contract value has also been raised to 2.78 billion Mexican peso [about RM777.67 million] representing an increase of 1.14 billion Mexican peso, which is equivalent to approximately RM318.9 million.
According to a bourse filing on Monday, this came after the JV unit, Coastoil Dynamic SA De CV, inked an addendum to the contract with Mexican state-owned petroleum company Petroleos Mexicanos (Pemex).
The addendum saw the JV’s contract extended up to December 2025. The JV was awarded the contract back in January 2021 for a tenure of 32 months — excluding the period for plant construction.
“Consequently, the maximum contract value has increased to 2.78 billion Mexican peso [about RM777.67 million] representing an increase of 1.14 billion Mexican peso, which is equivalent to approximately RM318.9 million,” Coastal Contracts said.
“The contract is expected to contribute positively to the earnings and net assets of the company for the financial years ending Dec 31, 2024 [FY2024] and FY2025,” it added.
The contract’s scope of work comprises engineering, procurement, construction, operation and maintenance of the plant.
The gas sweetening plant is located at Ixachi field, Veracruz, Mexico, and is capable of processing up to 180 mmscfd (million standard cubic foot per day) of wet sour gas a day. The Ixachi field is located 26km northeast from Tierra Blanca, Veracruz state.
Shares in Coastal Contracts closed unchanged at RM1.68, valuing the company at RM921.53 million.