Ranhill Utilities unit secures RM18mil contract from MMHE

KUALA LUMPUR: Integrated water supply company, Ranhill Utilities Bhd announced that its subsidiary, Ranhill Worley Sdn Bhd (RWSB), has secured a contract to perform front-end engineering design (FEED) for Kasawari carbon capture and storage project (CCS).

In a filing with Bursa Malaysia, Ranhill Utilities said that Perunding Ranhill Worley Sdn Bhd (PRW) -- an engineering and design services provider for oil and gas facilities -- was awarded an RM18.0 million contract from Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE).

Ranhill Utilities chairman and major shareholder Tan Sri Hamdan Mohamad is also a director and substantial shareholder of PRW.

Ranhill Utilities noted that the provision of engineering services by RWSB to PRW for the project is a recurrent related party transaction (RRPT), which is in the ordinary course of business and are on terms not more favourable to Hamdan.

Kasawari CCS is the world’s largest offshore CCS project, capturing over three million tonnes per annum of carbon dioxide (CO2). The new CCS platform will be located next to the Kasawari Central Processing Facility and linked via bridge. The CO2 will be transported by a 138-km pipeline and injected into a depleted offshore gas reservoir.

"Duration of work is seven months with the winner of FEED phase to be selected by Petronas at the end of 2022. If we are successful with our partner MMHE, the detailed design would commence in early 2023,” Ranhill Utilities said.

The project is expected to contribute positively to the revenue and earnings of Ranhill Utilities for the financial year ending Dec 31, 2022. - Bernama