KUALA LUMPUR (June 11): Energy infrastructure and marine services provider Coastal Contracts Bhd (KL:COASTAL) said on Thursday that a consortium led by its Mexican joint venture has secured a contract from Mexican state-owned oil company Petróleos Mexicanos (Pemex) for the development and operation of a gas sweetening plant, worth US$204.8 million (RM834.7 million).
The contract follows the completion of emergency infrastructure works on the second Perdiz Plant at Mexico’s Ixachi field in early May by Coastoil Dynamic SA de CV (CD), which is 50%-owned by Coastal Contracts, and its consortium partners.
The work order was issued to curb excessive gas flaring at the Ixachi field in January and was later formalised, as a standard open tender was not feasible at the time due to the emergency situation.
Other members of the consortium are Sistemas Integrales de Compresión SA de CV and Nuvoil SA de CV.
In a filing with Bursa Malaysia, Coastal Contracts said the latest contract covers procurement, transportation, installation, interconnection, commissioning, testing, start-up and operations and maintenance (O&M) of the facility.
The engineering, procurement and construction (EPC) portion of the contract is valued at US$157.5 million, while the O&M component is estimated at US$47.3 million.
The O&M phase will run over three years, from May 20, 2026 to May 19, 2029.
Coastal Contracts expects the job to contribute positively to group earnings and net assets for the financial year ending Dec 31, 2026 (FY2026) and subsequent financial periods for the duration of the contract.
Coastal Contracts shares have surged 38% since end-April. The counter closed two sen or 1.5% higher at RM1.38 on Thursday, giving it a market capitalisation of RM775.6 million.