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MMHE wins $227m platform deal from PetronasMMHE wins $227m platform deal from Petronas

Malaysia Marine and Heavy Engineering (MMHE) has won its first major contract for some time, securing a MYR1bn ($226.8m) processing platform construction job from Petronas Carigali.

Vincent Wee, Hong Kong and South East Asia Correspondent

April 18, 2017

1 Min Read
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The processing platform is for the Bokor Phase 3 redevelopment project offshore Sarawak, East Malaysia.

MMHE said in a stock market announcement that the contract included the engineering, procurement, construction, installation and commissioning (EPCIC) of the project’s central processing platform (CPP).

The company said it expects to see first steel being cut in the third quarter of 2018 and the job was scheduled to be completed in the middle of the second quarter of 2020.

“Upon completion, the new CPP will be installed at the Bokor field located in Baram Delta, offshore Sarawak, in a water depth of 70 metres,” it said.

MMHE noted the project was awarded after going through a competitive bidding process. Even though the project was given to basically a sister unit in the Petronas group, it suggests some vigour seems to be returning to the Malaysian oil and gas (O&G) market and bodes well for the year ahead.

"Hence, the award of this project is a reflection of MMHE’s improved competitiveness, thanks to a number of implemented cost-cutting strategies and efficiency initiatives combined with strong management focus on the heavy engineering business.”

The company said the contract is expected to contribute positively to its future earnings.

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Petronas

About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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