M3nergy looking to expand into Indonesia

  • Business
  • Friday, 20 Nov 2009

KUALA LUMPUR: Oil and gas field services provider M3nergy Bhd is looking to participate in Indonesian tenders to expand its floating, production, storage and off-loading (FPSO) business.

“We are bidding for the first contract for an FPSO job in Indonesia. We were called up a week ago to see whether we wanted to participate,” group managing director and chief executive officer Datuk Shahrazi Sha’ari told a briefing yesterday.

It is understood that if its tender was successful, it would be M3nergy’s first project in Indonesia.

The company is also looking to bid for a liquefied petroleum gas floating, storage and off-loading contract in Indonesia.

Currently, M3nergy has operations in Malaysia and Thailand.

Shahrazi said the closing date for tenders for the first FPSO job was Jan 3 next year.

“By April next year, we should be able to know the result. Before the end of the current financial year ending June 2010 (FY10), we should see something for the company,” he said.

If M3nergy was successful its bid, it would take two years to complete the conversion of the FPSO work, Shahrazi said, adding that it would be another income stream for the company from 2012 to 2013.

He said the company would also be actively tendering for jobs in the future, with Thailand, Indonesia, Vietnam and Australia as the focus.

M3nergy currently owns and operates two FPSO facilities – FPSO Perintis and FSO (floating, storage and offloading) Ratu Songkhla.

It also operates an FSO facility for Carigali Hess Operating Co Sdn Bhd.

Shahrazi said the FPSO business, which contributed 34% to the company’s turnover, was a core activity for M3nergy and it aimed to increase the contribution to 50% with the upcoming bids.

According to him, the FPSO business was not exposed to the economic downturn and fluctuating crude oil prices as the contracts were signed for the long term.

For FY10, the company expected to see a mild impact in the second half following the completion of the FSO Ratu Songkhla in September, he said.

The vessel has been commissioned and is ready to receive condensate as soon as Carigali-PTTEPI Operating Co Sdn Bhd begins production.

M3nergy will be operating the facility for the next 16 years.

On its outlook, Shahrazi said the company’s performance was expected to improve further as the long-term fundamentals of the oil market had not changed.

Demand was still projected to grow over the next 20 to 30 years, he added. —Bernama

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