KUCHING: KKB Engineering Bhd’s oil & gas subsidiary, OceanMight Sdn Bhd, has signed a letter of award (contract) of the Petronas Frame Agreement for the provision of engineering, procurement and construction (EPC) of fixed offshore structure works by the national oil company.
With the award of the frame agreement, OceanMight will be qualified as one of Petronas’ contractors for the said work. A formal contract will be executed within three months from the acceptance of the letter of award.
“The contract is effective Dec 12, 2018 and continue for a period of six years unless terminated earlier,” KKB told Bursa Malaysia yesterday (Jan 7).
The company said the contract was expected to contribute positively to its earnings and net assets during the duration of the
contract.
In July last year, OceanMight secured a contract from Petronas Carigali Sdn Bhd for the provision of engineering, procurement, construction and commissioning of wellhead platforms for D18 phase 2 project. The project aims to develop 12.5 million stock tank barrels of oil reserves located in the Balingian oil fields.
Together with D28 phase 1 contract secured earlier, the two contracts are worth some RM226 million. In October last year, OceanMight completed the wellhead platform, the final component of the D28 phase 1 oil drilling project. The company had delivered the D28 jacket earlier which was installed at the D28 oil field, about 85km north-west of
Bintulu.
D28 phase 1 is a greenfield project located in the Balingian oil and gas fields and has a water depth of 35m. D28 has 5.44 million stock tank barrels of recoverable reserves.
KKB, according to its group executive director Kho Pok Tong, had tendered for more offshore fabrication jobs in the oil and gas industry in fourth quarter-2018. The outcomes of these bids are expected in first half this year. – Alvin Tang
