OceanMight bids for three contracts worth RM355mil

  • Energy
  • Monday, 21 Oct 2019

Ocean might project

KUCHING: KKB Engineering Bhd’s oil and gas subsidiary OceanMight Sdn Bhd has bid for three contracts for fabrication of offshore structures worth about RM355mil.

Tenders for the bids were submitted during the July-September 2019 quarter.

Two of the bids are for engineering, procurement, construction and commissioning (EPCC) of fixed offshore structures and the third is a sub-contract package, according to KKB group executive director Kho Pok Tong. “The outcome of OceanMight’s bids will be known when the contracts are expected to be awarded by first quarter 2020, ” he told StarBiz. Last Tuesday, OceanMight achieved another milestone with the successful load out and sail away of a wellhead platform (topside) from its state-of-the-art fabrication yard at Jalan Bako here for Petroleum Nasional Bhd ‘s (Petronas) D18 Phase 2 oil drilling project, following D18 substructure’s successful installation 10 days earlier.

OceanMight was awarded the EPCC contract for the wellhead platform by Petronas Carigali Sdn Bhd in early 2018.

The D18 Phase 2 project aims to develop 12.5 million stock tank barrels (mmmstb) of oil reserves located in the Balingian oil fields, Sarawak.

OceanMight had also completed and delivered a jacket and wellhead platform for Petronas’s D28 Phase 1 oil drilling project - a greenfield project located in the Balingian oil and gas fields – a year ago. D28 has about 5.44 mmmstb of recoverable oil reserves.

“The successful delivery of an earlier EPCC D28 project and now D18 project, and with zero lost time injury and a combined 800,000 man hours is another achievement as it marked OceanMight’s bold entry into the ever-challenging oil & gas industry.

“This achievement further strengthens KKB’s progressive diversification plan (into the oil & gas industry from its traditional steel fabrication business).

“OceanMight is one of the few major offshore module and structure engineering, procurement, construction and commissioning players for major fabrication licensed by Petronas in 2013, ” said KKB in a press statement.

OceanMight was awarded and completed on time four other fabrication contracts for offshore structures worth about RM250mil between 2014 and 2017. Last year, the company secured new contracts with combined value of about RM300mil.

Kho said OceanMight’s two on-going contracts would be completed in stages by early 2020.One of the contracts is the provision of procurement and construction of wellhead deck, piles and conductors for Sapura Fabrication Sdn Bhd.

The contract is part of Sapura Fabrication’s engineering, pocurement, construction, installation and commissioning (EPCIC) for the Pegaga development project (Mubadala Petroleum) in Block SK320, offshore waters of Sarawak.

The second contract awarded by MISC Offshore Floating Terminals Dua (L) Ltd is for the provision of EPCC of new ESP module for upgrading and modification on MAMPU-1 and AJK platform for Vestigo Petroleum Sdn Bhd

OceanMight is one of the five companies (three in Peninsular Malaysia and two in Sarawak) awarded the Petronas Frame Agreement for the provision of engineering, procurement and construction (EPC) of fixed offshore structure works for six years, commencing Dec 12,2018.

The agreement means that OceanMight is qualified as one of Petronas’ contractors to bid for the said works. The other Sarawak company is state-owned Brooke Dockyard and Engineering Works Corp.

“Continuous tender bidding by OceanMight during second half 2019 is on-going, ” said Kho.

On the expansion project for the steel fabrication yard in anticipation of more fabrication jobs for offshore structures, he said between 35% and 40% of works had been completed.

A covered mega workshop with building height of 50m is under construction to accommodate multiple projects up to 18,000 tonnes per annum of works to be carried out simultaneously.

Between RM20mil and RM25mil has been set aside for the project that include investment in overhead heavy lifting equipment, state-of-the-art machinery and automation.The fabrication yard now has nine covered workshops and equipped with a dedicated 30,000 tonne load out jetty along the Sarawak River.

For its current operations, OceanMight employs about 600 Malaysians who are experienced engineers and skilled workers, said Kho.

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