Rig getting new lease on life as water injection unit for more sustainable oil recovery

Malaysia Marine and Heavy Engineering (MMHE), a wholly owned subsidiary of Malaysia Marine and Heavy Engineering Holdings (MHB), has landed a conversion deal to breathe new life into a mobile offshore drilling unit (MODU) by turning it into a water injection facility (WIF) designed to optimize reservoir pressure, enhance oil recovery rates, and reduce environmental impact.

This MODU revamp subcontract is seen as the firm’s first floater conversion project with Uzma’s Uzma Engineering (UESB), featuring the latter’s water injection technology to improve reservoir pressure and bolster oil recovery in a less emission-intensive manner.

MHB sees this deal as another step in advancing Malaysia’s energy sector, claiming that the previous 30-plus conversion projects under its belt make it well-equipped and ready to deliver this one. The mobile WIF will inject water into an oilfield reservoir to increase production and reserves recovery via pressure support from water injection and sweep into existing and new oil producers.

Mohd Nazir Mohd Nor, Managing Director and Chief Executive Officer of MHB, commented: “The conversion of the MODU into a mobile WIF highlights MHB’s expertise in complex heavy engineering, marine repair and conversion projects, reaffirming our commitment to enhancing asset performance within the industry. This achievement reflects our capability and commitment to supporting Malaysia’s energy sector, and we look forward to establishing a strong, long-term partnership with Uzma Berhad.”

The deal entails the demolition, refurbishment, life extension, and conversion of the MODU into a WIF, which will be deployed offshore Sabah by 2025 to support enhanced oil recovery efforts, contributing to what is expected to boost production efficiency in the region.

During its conversion at MMHE West Yard in Pasir Gudang, Johor, Malaysia, the MODU will be equipped with Uzma’s uzmaWIF, said to be a solution for efficient and sustainable water management in oil and gas operations. The new job comes at a time when MMHE completed a platform – including a topside, a four-legged jacket, and piles – for a Shell-operated gas project off the coast of Sarawak.

“This project marks a major milestone for MHB, showcasing our partnership with key industry players in bolstering Malaysia’s energy sector. With over 30 major conversion projects successfully completed to date, MHB is well-equipped to deliver this conversion with excellence,” highlighted Kamarul Redzuan Muhamed, Group CEO of Uzma.

“Uzma is pleased to be working with MHB on the conversion of our second WIF, which is scheduled for deployment in East Malaysia by mid-2025. Uzma pioneered the deployment of our mobile WIF solution in 2016 and it remains in operation today for our client. Our WIF solution has been proven to increase hydrocarbon production as well as maintain pressure to extend the oil field life cycle.”

The contract award to MHB comes more than six months after Uzma announced that its wholly-owned subsidiary, Uzma Engineering, has been awarded a contract by SEA Hibiscus for the lease of a water injection facility for the SF30 Waterflood Phase 2.

The duration of the contract was set to be effective from the date of the LOA and continue until five years from the final acceptance date of the WIF by SEA Hibiscus, the latter of which is expected to be completed within fifteen months, emphasizing a commitment to long-term collaboration and service excellence.

The assignment will see SEA Hibiscus provide a self-elevated floater with a water injection module and a bridge, facilitate hooking up and the bridge and pulling service lines to the existing SFJT-D platform, and manage the operation and maintenance of the WIF and its associated equipment and spares throughout the contract period.

“This contract marks an important project for Uzma. It not only demonstrates our capability in providing cutting-edge solutions in the oil and gas industry but also reaffirms our commitment to delivering excellence,” explained Uzma’s CEO.

The SF30 Phase 2 project award represents the Malaysian player’s second venture into water injection facilities, building upon the pioneering D18 WIF project secured in 2015, featuring water injection performed and installed on a mobile platform designed for flexibility, able to be mobilized to other platforms and fields when required.

The D18 facility’s operations led to a five-year extension beginning in November 2022, thus, the firm believes this proves its effectiveness in enhancing field operations and prompting further innovation within the industry.

The second WIF for SF30 Waterflood Phase 2 will be constructed over twelve months, contributing to Uzma’s financial performance in FY2026 and beyond.