Sumatec Resources Bhd has been awarded two contracts worth a total of RM139mil for work in Bintulu, Sarawak, increasing the value of its projects in hand to more than RM415mil.
These contracts are expected to contribute positively to the overall earnings and shareholder value of Sumatec over the contract duration, the company said in a statement yesterday.
One contract involves the upgrading and revamping of an existing ammonia, urea and granulation plant for Asean Bintulu Fertiliser Sdn Bhd.
The RM69mil project was awarded to Sumatec's wholly-owned subsidiary, Sumatec Corp Sdn Bhd (SCSB), and its technology partner, Project & Development India Ltd.
This contract is expected to commence this month and to be completed by December 2004, Sumatec executive director James Chan said.
The upgrading exercise will increase the Asean Bintulu Fertiliser plant's granular urea production capacity from 1,800 tonnes to 2,250 tonnes per day.
The second contract, worth RM70mil, was awarded to SCSB and another technology partner, Astel Peineger Sdn Bhd, by Malaysia LNG Sdn Bhd (MLNG), which operates one of the largest liquefied natural gas plants in the world.
According to Chan, the project calls for the revamp and rejuvenation of two modules of the MNLG plant in Bintulu.
The project would extend the life-span of the plant by another 20 years. Work is expected to be completed by the end of next year, Chan said.
Both Asean Bintulu Fertiliser and MNLG are members of the Petronas group of companies.