KUALA LUMPUR (Oct 1): Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) has secured a RM43 million subcontract from a subsidiary of Uzma Bhd (KL:UZMA) for the conversion of a mobile offshore drilling unit (MODU) into a mobile water injection facility (WIF).

In a bourse filing on Tuesday, the energy and marine solutions provider said the contract was awarded to its wholly owned subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) by Uzma Engineering Sdn Bhd (UESB).

Under the contract, MMHE will handle the demolition, refurbishment, life extension, and conversion of the MODU into a mobile WIF, with the work expected to be completed by the first quarter of 2025. This will be MMHE’s first floater conversion project for UESB.

"Upon completion, this facility will be deployed offshore Sabah by 2025 to support enhanced oil recovery efforts, contributing to increased production efficiency in the region," MHB said.

MHB also noted that during the MODU’s conversion at MMHE West Yard in Johor, it will be fitted with Uzma’s mobile WIF, a state-of-the-art solution for efficient and sustainable water management in oil and gas operations.

This system is designed to optimise reservoir pressure, enhance oil recovery rates, and reduce environmental impact.

"The conversion of the MODU into a mobile WIF highlights MHB’s expertise in complex heavy engineering, marine repair, and conversion projects, reaffirming our commitment to enhancing asset performance within the industry," said MHB managing director and chief executive officer Mohd Nazir Mohd Nor.

"This achievement reflects our capability and commitment to supporting Malaysia’s energy sector, and we look forward to establishing a strong, long-term partnership with Uzma," he added.

Meanwhile, Datuk Kamarul Redzuan Muhamed, the group CEO of Uzma, expressed his delight in partnering with MHB for its second WIF. He also highlighted that Uzma's mobile WIF solution, introduced in 2016, has successfully boosted hydrocarbon production and extended the life cycle of oilfields.

Shares in MHB fell one sen, or 2.25%, to close at 43.5 sen on Tuesday, giving the company a market capitalisation of RM672.56 million. Meanwhile, Uzma shares closed half a sen or 0.51% lower at 98 sen, valuing the company at RM395 million.

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