MMHE secures work on SapuraOMV’s offshore gas project

Malaysia Marine and Heavy Engineering (MMHE) has secured a contract from SapuraOMV to undertake the engineering, procurement, construction, transportation & installation, and hook-up & commissioning services (EPCIC) for the SK408W Jerun development project offshore Sarawak, Malaysia.

MMHE is a subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad (MHB).

The company said on Tuesday that this EPCIC contract work scope includes the construction of an approximately 15,000-metric tonne (MT) topside, 10,000 MT jacket, and 5,000 MT piles of Central Processing Platform (CPP).

MMHE added that it also includes the design engineering of a 30-inch carbon steel pipeline with a length equivalent to 80 kilometres distance from this CPP to the existing E11R-B platform to commingle with the existing trunkline to Petronas Malaysia LNG Plant in Bintulu, Sarawak.

Upon completion, the facilities will be installed in Jerun gas field, which lies in the SK408W Block located offshore Bintulu.

SapuraOMV is the operator of SK408W Block, with Sarawak Shell Berhad and Petronas Carigali holding 30 per cent equity interest, each.

The contract award to MMHE follows the Final Investment Decision (FID) for the project by SapuraOMV. The project is expected to start the first gas production in 2024.

The SK408 gas fields are part of the discoveries made by SapuraOMV in a drilling campaign in 2014.

Encik Pandai Othman, Managing Director and Chief Executive Officer of MHB said, “We are truly honoured to have been entrusted with such a significant project by SapuraOMV Upstream (Sarawak) Inc. and partners. This is indeed an acknowledgement of our technical competencies and commercial competitiveness in this industry and demonstrates MHB’s capability in providing integrated and value-added solutions”.

He added: “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”.

“With this being our first project with SapuraOMV, we hope this marks the beginning of a long-lasting business relationship and mutual support between the two companies”, he concluded.