KUCHING: KKB Engineering Bhd (KKB) and its oil & gas subsidiary OceanMight Sdn Bhd have been awarded three contracts worth a combined RM29 million.
Two of the contracts involved the supply of mild steel cement lined (MSCL) pipes for the Sarawak Water Supply Grid Programme to Mirecont Sdn Bhd and SKE Alliance Sdn Bhd.
The contract to OceanMight is from MISC Offshore Floating Terminals Dua (L) Ltd for the provision of engineering,
procurement,construction and commissioning of new ESP
module for upgrading and modification on MAMPU-1 and AJK Platform for Vestigo Petroleum Sdn Bhd.
“A formal agreement for the said MISC contract shall be executed in due course,” KKB said in a filing with Bursa Malaysia yesterday.
KKB said the MISC contract would be completed by December 2019 while the supply of the water pipes to Mirecont and SKE would be progressively delivered by March 2020.
The contracts, it added, would contribute positively to the earnings and assets of KKB and group for the duration of the supply period.
In January 2019,OceanMight has accepted and signed a letter of award of the Petronas Frame agreement for the provision of engineering, procurement and construction (EPC) of fixed offshore structure works.
With the award of this frame agreement, OceanMight is qualified as one of Petronas’ contractors to bid for the said work over a six-year period.
KKB group has continued to benefit from the implementation of the billion-ringgit state water grid programme either in project construction or supply of water pipes.
On March 20, 2019, KKB, Sarawak’s sole steel water pipe manufacturer,received a purchase order from Laras Jaya Engineering Sdn Bhd for the supply of MSCL pipes.
KKB won two major contracts worth RM110.8 million from Jabatan Bekalan Air Luar Bandar Sarawak in late February 2019. The first contract is for the design, construction, completion, testing and commissioning of the proposed Package SRI (South Region) under the water grid programme.
The second contract is for the proposed water supply from Kota Samarahan to Sebuyau — construction and completion of MSCL pipeline and all associated works (package 1C).
The first contract is expected to be completed by December 2020 and the second by March 2020.
In Sabah,subsidiary KKB Industries (Sabah) Sdn Bhd received a purchase order for the supply of concrete-lined mild steel pipes to Leadshine Sdn Bhd on April 15,2019.
KKB group executive director Kho Pok Tong has predicted that in 2019,the group would at least double the RM34 million in sales of steel water pipes recorded in 2018 due the accelerated implementation of the water grid programme.
He was quoted in a recent media report that the group had received enquiries for the supply of water pipes from six main contractors of the water grid programme that would involve a total 247 projects under phase I. ,
Other contracts which KKB group have secured this year include the annual supply and delivery of steel products to Syarikat Sesco Bhd, price agreement for new and refurbishment of LPG cylinder for Petronas
Dangan Bhd (fabrication,reconditioning of LPG cylinders and to supply & deliver LPG compact valves).
KKB’s associated Edisi OPtima Sdn Bhd received a similar award from Petronas Dagangan for the price agreement for refurbishment of LPG cylinders: requalification and shot-blast repainting of LPG cylinder).
According to Kho, KKB group is expected to bid up to RM350 million worth of contracts that cover manufacturing and engineering as well as fabrication of offshore structures in the current April-June 2019 quarter.
In the January-March 2019 quarter,the group had submitted tenders for RM248 million worth of contracts.
