The contract is for facilities to be installed in Jerun gas field in the SK408W Block, offshore Sarawak
The contract has been awarded to MHB’s wholly owned subsidiary Malaysia Marine and Heavy Engineering (MMHE).(Credit: C Morrison from Pixabay)
Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) has secured a contract from SapuraOMV Upstream (Sarawak) for a gas field development project, offshore Malaysia.
The contract has been awarded to MHB’s wholly owned subsidiary Malaysia Marine and Heavy Engineering (MMHE).
Under the contract, MMHE will be responsible for the engineering, procurement, construction, transportation and installation, and hook-up and commissioning services (EPCIC) for the Jerun gas field development project, offshore Sarawak.
The EPCIC contract includes construction of an approximately 15,000 metric tonne (MT) topside, 10,000MT jacket and 5,000MT piles of Central Processing Platform (CPP).
Besides, MMHE will be responsible for the design engineering of a 30inch carbon steel pipeline with a length equivalent to 80km distance from the CPP to the existing E11R-B platform.
The pipeline will be installed to commingle with the existing trunkline to PETRONAS Malaysia LNG Plant in Bintulu, Sarawak.
The facilities will be installed in Jerun gas field, which lies in the SK408W Block located offshore Bintulu, Sarawak.
SapuraOMV Upstream (Sarawak) is the operator of SK408W Block, with Sarawak Shell Berhad and PETRONAS Carigali as its partners, holding 30% stake each.
MHB chief executive officer and managing director Encik Pandai Othman said: “As I have mentioned before, the industry is now getting back on an upturn after the slowdown in 2020 due to the low oil price and COVID-19 pandemic, resulting in CAPEX cutback by oil and gas giants due to the uncertainties in the industry.
“2021 has been coined as our recovery year and what a better way to start it other than with a major EPCIC project like Jerun.”
In September last year, SapuraOMV Upstream achieved first production from its operated offshore Bakong gas field project under the SK408 Production Sharing Contract (PSC) in Malaysia.
The SK408 PSC development involves the commercialisation of the gas reserves from Gorek, Larak and Bakong fields.