KUALA LUMPUR: Muhibbah Engineering (M) Bhd
has accepted a contract from Petronas Carigali Sdn Bhd, a subsidiary of Petroliam Nasional Bhd (Petronas), for the provision of minor engineering, procurement and construction (ePC) works in Terengganu.
The contract entails the construction of wellhead platforms under the Sepat Integrated Redevelopment Project, situated offshore northeast of Kuala Terengganu.
In a filing with Bursa Malaysia, the company said the value of contract is estimated to be approximately RM700 million to RM850 million.
"The contract is scheduled to commence in December 2025 and is expected to be completed by the first quarter of 2029,” it said.
On financial impact, Muhibbah said the contract is expected to contribute positively to the earnings and net assets of the group during the contract period and the following financial years.
"The contract does not have any impact on the share capital and/or shareholding structure of the company,” it said.
The company added that the contract falls within the group’s normal business scope and does not expose it to new risks beyond those typically associated with its operations, including economic and regulatory changes, manpower constraints, and fluctuations in material prices and foreign currencies.
"The board of directors, after considering all the relevant factors, is of the opinion that the contract is in the best interest of the Muhibbah Group,” it added. - Bernama
