GlobalMariner receives Deep Producer 1 FPSO contract

Malaysia’s GlobalMariner Offshore Services will provide manpower and expertise in support of Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) works on the ‘Deep Producer 1’ FPSO.

The company has been hired by TH Heavy Engineering to form a Project Management Team for the Layang FPSO Project, located in Block SK10, offshore Sarawak, Malaysia.

GlobalMariner Offshore Services will principally take the lead in managing all technical matters in relation to the design and engineering, project management, offshore pre-commissioning and offshore commissioning and start up for the conversion project of FPSO Deep Producer 1.

The contract is estimated to have a contract value for a $20 million (equivalent to approximately RM64 million).

FPSO Deep Producer 1 is owned by Floatech (L) Ltd (“Floatech”), a 80% subsidiary of THHE. Floatech was incorporated in Labuan on 19 August 2011 and is principally engaged in owning and operating the FPSO vessel.

Layang development

TH Heavy Engineering in May announced it had received a contract from JX Nippon Oil & Gas Exploration for the Layang Development Project, located in Block SK10, offshore Sarawak, Malaysia.

Under the contract, THHE will deliver and install the Deep Producer 1 FPSO at the project location, and lease the FPSO until November 2023.

An option to extend the lease from November 2023 is also included. JX Nippon will be able to keep the FPSO working at location for up to ten more years after the original contract expires.

The contract value for the firm period is estimated at US$372 million, with additional potential of up to $457 million if JX Nippon decides to extend the contract for ten more years.