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Third Malaysian offshore supply base in Kelantan set to start operation in April

Third Malaysian offshore supply base in Kelantan set to start operation in April
Malaysia's third offshore supply base in Kelantan looks set to take off with operations commencing in April and is expected to draw some MYR1bn ($275.9m) in investments over the next three years, local reports said.

The Tok Bali Supply Base (TBSB) in Pasir Puteh, Kelantan, is meant to support oil and gas (O&G) activities off the northern Peninsula Malaysian state’s coast. Licences and certification from national oil company Petronas and relevant government agencies were obtained last month. With the approvals, TBSB would be in a position to develop the 328-acre site and attract providers of support services to the offshore O&G industry players.

“At present, over 100 companies have expressed interest to invest in Tok Bali. In the next two to three years, we expect MYR500m worth of investments, which can go up to MYR1bn, depending on how fast they build the facilities,” International Trade and Industry Minister Mustapa Mohamed was quoted as saying.

“Employment opportunities are also expected to rise with a mix of 60% skilled and 40% unskilled workers,” he added.

Tok Bali will be Malaysia's third O&G supply base after the 30-year-old Kemaman and Labuan supply bases and will bring direct and indirect investments to Kelantan, which will spur economic activities in the state. It is aimed at servicing the needs of the Malaysia-Thailand Joint Development Area, to which it is nearer than Kemaman further south.

TB Supply Base (TB Supply) took over the Tok Bali port operations in July last year from ECT, and the company has invested about MYR90m in the first phase of the project, which is now completed with an all-weather jetty/quay/wharf with a total of 500m and 7m draft that provides berthing space for five supply boats.

Mustapa said that with the Government’s approval in facilitating the port, TB Supply was on track with its partners to spend an additional MYR100m this year on the project, which was conceived four years ago.Meanwhile, TB Supply chief operating officer Jim Iler said the MYR100m investment this year would encompass constructing six additional warehouses, new office buildings, a new customs and immigration building, security offices and a three-storey canteen to service O&G players, among others.

“The master plan for the three-phase project (Phase 1 & 2 – O&G Supply) and commercial port (Phase 3) is expected to be ready in April, after which TBSB will be breaking ground during the same time, on its customs and immigration building, new offices, canteen and rigging loft (all of which cost approximately MYR30m),” he said, adding that it expected to invest MYR200m in 2016 for O&G facilities.

Iler said the present low oil price would help companies that were looking for alternatives to save cost, as they wanted to get to a closer facility where resources could be delivered to them at much cheaper rates.“TBSB can complement the congestion and delay currently faced in the Kemaman Supply Base. We are currently in talks with 10 other O&G listed companies; we hope to see some results soon,” he said, adding that TB Supply had invested MYR39m to construct a mud plant, which it would operate.

Additionally, he said, TB Supply was in talks with a manufacturer to set up a MYR340m pipe-coating facility in TBSB that would require 80 acres.Last month, it had secured a MYR16m tank farm (fuel and water) deal with Ahmad Zaki Resources Bhd.

TAGS: Malaysia