Oceanmight to bid in H2


  • Business
  • Friday, 10 May 2013

KUCHING: Oceanmight Sdn Bhd, which recently secured a licence from Petroliam Nasional Bhd (Petronas) to fabricate offshore facilities for the oil and gas industry, will commence bidding for contracts in the second half of this year.

The 43%-owned subsidiary of KKB Engineering Bhd targets to undertake the fabrication of its first offshore structure in first half of 2014 at the latest, said KKB group executive director Kho Pok Tong.

He said Oceanmight had started its business development activities, including meeting Petronas’ production sharing contractors (PSC) to offer its fabrication services for offshore facilities.

“In the first three years, Oceanmight targets fabrication works for offshore structures from below 10,000 tonnes to 20,000 tonnes. We will be looking at general structures like wellhead, jacket and drilling platform leading to topside eventually.

“We will start from small projects to prove our capabilities and establish our credibility and then move to medium and large projects,” he told StarBiz after KKB’s AGM here yesterday.

He said KKB’s core expertise in steel fabrication over the past 50 years had given strength and credibility in its diversification in the new business in the oil and gas industry.

Kho said Oceanmight’s ambition over the next five years was to progress from engineering, procurment and construction (EPC) to engineering, procurment, construction and commissiong (EPIC) and then to engineering,procurement,construction,installation and commissiong (EPCIC).

The licence Oceanmight obtained from Petronas in March is for the “offshore facilities construction-major onshore fabrication” category. The licence is valid for three years.

Oceanmight’s other shareholders are Kuala Lumpur-based Annexe Fair Sdn Bhd and Sarawak-based Edisi Optima Sdn Bhd with a 37% and 20% stake respectively in the company.Oceanmight is the seventh fabricator licensed by Petronas,and the second in Sarawak after state-owned Brooke Dckyard & Engineering Works Corporation.

Kho said the licence was obtained about one month after the lapse of a memorandum of understanding (MoU) signed between KKB and Brook Dockyard on planned collaboration to jointly undertake the fabrication of offshore structures.

The 100-year-old Brooke Dockyard has completed some 15 offshore modules, 10 sub-structures and four offshore living quarters for oil majors, including Petronas Carigali, Shell, Talisman, ExxonMobile and Murphy Oil.

“The MoU lapsed as both parties were unable to identify viable projects to work on after one year,” explained Kho.

Kho said with KKB’s newly completed plant housing a fabrication yard equipped with five workshops and jetties fronting Sarawak River in Muara Tebas, the company was well positioned to undertake a full range of fabrication works.

One of the jetties is designed for the uploading of completed offshore structures for the oil and gas industry and the other for general cargo. The jetties are barely 5km from the river mouth.

“We have invested about RM50mil in the new plant and more new automated equipment will be acquired and installed. In the next three to five years, we have allocated another RM50mil for capital expenditure (capex),” he added.

For the first quarter ended March 31,2013, KKB posted a significant increase in the group’s pre-tax profit to RM15.8mil on turnover of RM64.3mil.

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