KUALA LUMPUR (May 21): Coastal Contracts Bhd (KL:COASTAL) said it has officially locked in a US$92.5 million (RM367.1 million) contract with Mexico’s state-owned oil company Petróleos Mexicanos (Pemex) that formalises the agreement for emergency infrastructure works on a gas sweetening plant in Mexico's Ixachi field that its consortium has been undertaking over the last four months.
The contract was awarded on May 20 after the successful completion of an emergency order back in January within the stipulated timeline by the consortium led by Coastal Contracts' Mexican joint venture, according to Coastal Contract's bourse filing on Thursday. The plant — the second Perdiz Plant — has now commenced operations.
The work order was issued by Pemex to curb excessive gas flaring at the Ixachi field. Due to the emergency situation, a standard open tender was not feasible at the time, and the consortium was instructed to proceed immediately.
This contract covers only the primary infrastructure works on the plant. It started from Jan 23, 2026, and will end on May 22, 2026.
Another contract, covering the actual design, construction and commissioning of the plant, is expected to follow once it has been finalised by Pemex, said Coastal Contracts.
"The successful completion and commencement of operations of the plant within just four months represents a remarkable engineering and execution achievement by Coastoil Dynamic SA De CV (CD) and its consortium partners, particularly given the scale, complexity and challenging operating environment of the project," Coastal Contracts said.
Besides CD, which is 50%-owned by Coastal Contracts, other members of the consortium are: Sistemas Integrales de Compresión SA de CV and Nuvoil SA de CV.
Shares of Coastal Contracts ended eight sen or 5.41% lower at RM1.40 on Thursday, valuing the company at RM775.31 million.