SapuraKencana & GE JV scoop Petronas FLNG award

SapuraKencana GE Oil & Gas Services (SKGE), a joint venture between SapuraKencana Services and GE Power Systems, has been awarded a long-term service agreement by Petronas to provide maintenance services for its two forthcoming floating LNG vessels.

A contract exchange ceremony for the award was held in Kuala Lumpur on Thursday, March 24, 2016 between Petronas and the JV.

SapuraKencana said that, under the agreement, SKGE will provide Petronas with complete maintenance services for the fleet of twelve gas turbines as well as their fleet of GE compressors, generators and electric motors to be installed on Petronas’ floating LNG vessels. These maintenance activities will be fully executed by the joint venture’s pool of local qualified field service engineers and diagnostic experts.

According to SapuraKencana’s press release, the Petronas floating LNG vessels are examples of the emerging trend in the industry for smaller, more flexible plants which allow for more efficient extraction from remote fields without the capital expenditure of a traditional LNG facility.

The first of the two vessels, PFLNG SATU will be deployed on the Kanowit field offshore Sarawak. It will add approximately 1.2mtpa of LNG production to Malaysia’s LNG exports.

“What we have today is a Malaysia-based repair and maintenance centre that is one of the most cost-competitive within the entire GE Oil & Gas repair network,” said Tan Sri Shahril Shamsuddin, President and Group Chief Executive Officer, SapuraKencana Petroleum Berhad.

“The success of the centre bears testimony to the local talent we have trained and who will over time become experts and leaders in delivering FLNG solutions. Looking ahead, we strive to achieve top operational performance while continuing to keep our costs down. We will continue to expand our regional footprint and remain committed to the long-term sustainability of the industry in Malaysia.”

“I would like to thank our partner, GE Oil & Gas and PETRONAS for entrusting us with this significant task,” he added.

Lorenzo Simonelli, President and CEO, GE Oil & Gas said: “This agreement represents another example of how GE Oil & Gas is continuing to partner with PETRONAS and our commitment to providing equipment and maintenance for innovative projects around the world.”

“We are very proud to be able to partner with our customers and deliver improved reliability and increased periods between maintenance thanks to our equipment and digital solutions.”

Visal Leng, General Manager for Asia Pacific, GE Oil & Gas added, “This is the first contract of its kind in the world for a long-term maintenance agreement on an FLNG vessel. As the industry evolves and LNG operators are looking to make the most of their investments, our proven maintenance expertise and the direct contact PETRONAS will have with our Diagnostic Engineers, some of whom are here in Kuala Lumpur will provide them with the support they need to operate their FLNG vessels.”