Oil & gas contract awards set to recover this year

March 8, 2020

Dateline 2020-01-05, The Sun:

Contract awards for the oil & gas sector are expected to recover after a decline in Q4 2019, said AmInvestment Research (AmResearch).

Malaysia’s 2019 contract awards slid 6% year-on-year (yoy) to RM11.5 billiion due to slower order flows in Q4, which fell 35% quarter-on-quarter (qoq) and halved yoy to RM2.2 billion.

This followed multiple awards to Sapura Energy, Malaysia Marine & Heavy Engineering Holdings (MMHE) securing a RM2.5 billion Kasawari central processing platform job and Bumi Armada’s 30% stake in ONGC’s KG-DWN 98/2 FPSO charter in the previous quarter.


More oil and gas contracts for Malaysian players in Q1 2020: Report

March 3, 2020

Dateline 2020-01-03, Business Times:

MALAYSIAN oil and gas service providers can expect contract awards to improve in the first three months of the new year, compared with the decline in 2019 – on the back of not just seasonal lumpiness in the first and fourth quarters, but also momentum from longer-term projects.

That’s according to a recent report by AmBank analyst Alex Goh, who noted that Saudi Aramco has picked Sapura Energy and Malaysia Marine & Heavy Engineering Holdings for its long-term agreement programme – opening up the field to offshore projects in Brazil, Mexico, the Middle East and West Africa that may be worth as much as US$150 billion over the next decade.

 


Challenges remain for sour gas field project

July 20, 2019

Dateline 2019-06-21, Upstream Online:

Exploiting the estimated 3.2 trillion cubic feet of recoverable gas reserves hosted in the Kasawari sour gas field off Malaysia has been a long time coming and there are still hurdles to be overcome, writes Amanda Battersby.

Operator Petronas originally targeted a 2019 start-up date for Kasawari with peak production of 900 million cubic feet per day envisaged. However, it now seems likely that the final investment decision will not be taken until the middle of next year at the earliest.

Among the challenges, industry sources suggested Petronas could yet return to the market with another open tender process if it cannot agree an acceptable price for the large central processing platform with preferred contractor Malaysia Marine & Heavy Engineering.


KPOC files RM125m claim against MMHE

April 29, 2019

Dateline 2019-03-18, The Star:

Kebabangan Petroleum Operating Company (KPOC) has filed a RM125mil claim against Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) over a contract dispute at an oil field north of Sabah.

MMHE said on Monday its major subdiary Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE Sdn Bhd) had received a notice of arbitration dated March 13 from KPOC.

The first contract was for the fabrication of the topsides for the Kebabangan field, about 135km northwest of Kimanis, Sabah betweem KPOC and Sime Darby Enginering Sdn Bhd. The contract was dated Sept 20, 2011.


Petronas’ oil rig-making unit stays in the red for fourth straight quarter

December 4, 2016

Dateline 2016-10-28, Nikkei Asian Review:

Malaysia Marine and Heavy Engineering, an oil rig builder controlled by state oil and gas company Petronas, suffered its fourth consecutive quarter of losses due to fewer and lower-valued projects.

Net loss for the three months ended September 30 totaled 4.5 million ringgit ($1.1 million) compared to net profit of 17.0 million ringgit a year earlier, the company said. Quarterly revenue fell nearly 24% year-on-year to 333.5 million ringgit from 436.3 million ringgit.

“The continued downturn of the oil and gas industry is expected to impact the group’s business with significant offshore project cancellations and deferments,” the company said. “This is expected to result in further decline in asset utilization, currently being assessed for impairment which will significantly affect the current year financial result.”

Petronas’ oil rig-making unit stays in the red for fourth straight quarter

November 4, 2016

Dateline 2016-10-28, Nikkei Asian Review:

Malaysia Marine and Heavy Engineering, an oil rig builder controlled by state oil and gas company Petronas, suffered its fourth consecutive quarter of losses due to fewer and lower-valued projects.

Net loss for the three months ended September 30 totaled 4.5 million ringgit ($1.1 million) compared to net profit of 17.0 million ringgit a year earlier, the company said. Quarterly revenue fell nearly 24% year-on-year to 333.5 million ringgit from 436.3 million ringgit.


Malaysian oil and gas hub materializes as Malikai nears production

October 23, 2016

Dateline 2016-09-12, Offshore:

Shell recently celebrated several major milestones for Malikai as it moves closer to entering production, when it will become the company’s second operated deepwater project in Malaysia after Gumusut-Kakap.

In June, the Technip-Malaysia Marine and Heavy Engineering (MMHE) joint venture (TMJV), contracted by Shell in February 2013, concluded onshore fabrication and commissioning operations. The 27,500-metric ton TLP then began its 1,400-km (870-mi) excursion from the MMHE West fabrication yard at Pasir Gudang in Peninsular Malaysia to the Malikai field, which lies in the South China Sea some 100 km (62 mi) off Sabah.

The TLP was transported by the Dockwise heavy-lift vessel White Marlin, according to fellow contractor InterMoor, which was responsible for the marine aspects of its float-off and tow.

These milestones behind it, a spokesperson for Shell based in Kuala Lumpur recently told Offshorethat it anticipates first oil in 2017.