KUALA LUMPUR (Oct 28): T7 Global Bhd (KL:T7GLOBAL) said on Wednesday it has secured a three-year contract to provide hook-up and commissioning (HUC) services in Peninsular Malaysia from a PETRONAS-Eni joint venture.
HUC services involve connecting newly installed oil and gas facilities to piping, power and control systems and then testing them to ensure they operate safely before production begins.
In a filing with the bourse on Wednesday, the integrated energy services provider said that its wholly owned unit, Tanjung Offshore Services Sdn Bhd, received the contract from Searah (Malaysia) Sdn Bhd, formerly known as Seara Energy Sdn Bhd, on Aug 25.
However, as the announcement of the award required the customer’s approval, which was only received on Oct 27.
Work on the contract, awarded under package C1, began on Aug 21 and is slated to run until Sept 26, 2029.
Package C1 is a standard reporting designation for oil and gas HUC work to be carried out in Peninsular Malaysia.
Searah (Malaysia) is a 50:50 joint venture between PETRONAS and Italy-based energy firm Eni SpA. The company runs 19 gas-producing and development assets in Malaysia and Indonesia, recently took over five upstream oil and gas assets from PETRONAS Carigali Sdn Bhd.
The filing did not disclose the value of the contract.
The group said the contract is expected to contribute positively to its earnings and net assets, but noted potential risks, including the availability of equipment and skilled workers, as well as regulatory conditions.
At the noon break on Wednesday, T7 Global shares were flat at 24 sen, giving the group a market capitalisation of RM244 million.