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KUALA LUMPUR (Dec 18): Muhibbah Engineering (M) Bhd (KL:MUHIBAH) has accepted an award from PETRONAS Carigali Sdn Bhd to undertake minor engineering, procurement and construction (ePC) works for wellhead platforms under the Sepat Integrated Redevelopment Project offshore Terengganu.
In a bourse filing on Thursday, the oil and gas services provider said the contract, which is located offshore north-east of Kuala Terengganu, is estimated to be worth between RM700 million and RM850 million.
The contract is scheduled to commence in December 2025 and is expected to be completed by the first quarter of 2029.
Muhibbah said the job is expected to contribute positively to the group’s earnings and net assets over the contract period, with no impact on its share capital or shareholding structure.
The award marks Muhibbah’s latest contract from PETRONAS Carigali, following its involvement in the Gansar project awarded in November 2023.
At the time, Muhibbah said it had secured a RM318 million contract from PETRONAS Carigali as the consortium lead partner for the Gansar project, located about 190km offshore Terengganu.
It was also reported in December 2022 that a consortium led by Muhibbah had won a RM322 million contract from PETRONAS Carigali for works related to the same project.
Shares in Muhibbah finished half a sen or 1% higher at 50.5 sen on Thursday, giving it a market capitalisation of RM366.64 million.
Year to date, the stock has declined 36.08%.