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THHE seals $830m FPSO deal

TH Heavy Engineering Bhd (THHE) has won a contract for the provision of engineering, procurement, construction, installation and commissioning (EPCIC) services and leasing of its floating production storage and offloading (FPSO) vessel, that could be worth up to MYR2.6bn ($830.4m), local reports said.

Vincent Wee, Hong Kong and South East Asia Correspondent

May 20, 2014

1 Min Read
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The letter of award (LoA) from JX Nippon Oil and Gas Exploration (M) involves the provision of EPCIC and subsequent leasing of its FPSO Deep Producer 1 until 17 November 2023 for the Layang Development Project at Block SK10, offshore Sarawak.

There is a provision for optional yearly extensions of lease for the FPSO facilities up to a maximum of 10 years.

The award was estimated to be worth about MYR1.2bn for the primary period, with additional potential of up to about MYR1.47bb should the full extension options be exercised.

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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