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Media Releases - 2008

23/10/2008

PETRONAS CARIGALI AWARDS RM2.8 BILLION WORTH OF CONTRACTS TO LOCAL FABRICATORS

PETRONAS Carigali Sdn Bhd, the exploration and production arm of PETRONAS, has awarded 15 contracts for four of its upstream projects to five local fabricators.
 
The contracts, valued at more than RM2.8 billion, were awarded to Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), Sime Darby Engineering Sdn Bhd, Kencana HL Sdn Bhd, Ramunia Fabricators Sdn Bhd and Oilfab Sdn Bhd. The contracts were signed today at the PETRONAS headquarters in Kuala Lumpur.
 
Under the terms of the respective contracts, the five contractors will procure and construct various components of the facilities for the development of the Kumang Cluster Fields offshore Sarawak, the Tangga Barat Cluster Fields offshore Peninsular Malaysia, the Kinabalu Non-Associated Gas Fields offshore Sabah, and the enhancement of gas compression capacity at the producing Dulang Field offshore Terengganu.
 
MMHE, a subsidiary of MISC Bhd, was awarded two contracts valued at about RM1.17 billion to procure and construct a topside and a jacket for Tangga Barat project's central processing platform (CPP) and a topside for the Kinabalu project's CPP.
 
Sime Darby Engineering's three contracts, valued at about RM1.12 billion, encompasses the procurement and construction of two drilling platform's topsides each for the Kumang and Tangga Barat projects, a topside for Kumang project's CPP and a drilling platform jacket for the Kinabalu project.
 
The scope of work of Kencana HL, which was awarded three contracts valued at RM288 million, comprises the procurement and fabrication of two sets of drilling platform jackets and topsides each for the Tangga Barat and Kinabalu projects, and the provision of a unit of gas compression module for the Dulang Field.
 
Ramunia Fabricators will be responsible for the procurement and construction of a drilling platform jacket and a CPP jacket for the Kumang project, and a drilling platform jacket for the Tangga Barat project. The three contracts are valued at approximately RM140 million.
 
Oilfab Sdn Bhd, a subsidiary of Oilcorp Bhd, was awarded four contracts valued at RM102 million, for the procurement and construction of a drilling platform jacket, flare module and bridge for the Tangga Barat project, as well as a drilling platform jacket, flare module, bridge and tripod for the Kumang project.
 
When completed, the offshore facilities will boost Malaysia's gas production by 950 million standard cubic feet per day (mmscfd), which will enhance the security of supply to the domestic and export markets.
 
The award of the contracts to the Malaysian companies reflects PETRONAS' confidence and commitment in harnessing and nurturing the capability and expertise of homegrown fabricators in the oil and gas industry. The contracts are also expected to provide business opportunities to local subcontractors and service providers, exposing them to the projects that would help them build their own capability and expertise.
 
At the signing ceremony held at the PETRONAS Twin Towers, PETRONAS Carigali was represented by its Managing Director/CEO Datuk Abdullah Karim, MMHE by its Managing Director/CEO Wan Yusoff Wan Hamat, Sime Darby Engineering by its Head of Oil & Gas Business Encik Abdul Kadir Alias, and Kencana HL by its Managing Director Ir Haron Ali. Ramunia Fabricators was represented by its CEO Dr. Daniel CS Ahn while Oilfab by its Managing Director/CEO Dato' Mohamed Hazali Abu Hassan.
 
The signing ceremony was witnessed by PETRONAS Vice President for Corporate Services, Encik Ahmad Nizam Salleh.
 
Issued by:
Corporate Communication Department
Group Corporate Affairs
PETRONAS
 
23 October 2008
 
More about the Projects
 
The Kumang Cluster is located about 200km offshore Bintulu, Sarawak in water depths of 59 to 102 metres. The cluster consists of 10 fields, namely F9, F22, Kumang, A3, F11, F12, F27, Kanowit, Selar Marine and Bunga Pelaga. The development of this cluster will be carried out in two phases, where Phase I consists of the development of F9, Kumang and Kanowit fields, and the construction of one central processing platform and two satellite drilling platforms. A total of 23 development wells are planned to be drilled. The remaining fields in the cluster will be developed in Phase II. Gas produced from the project will be transported to the PETRONAS LNG Complex in Bintulu via a new pipeline to be installed by 2010.
 
The Tangga Barat Cluster fields are located approximately 188 kilometres off the East Coast of Peninsular Malaysia. This cluster consists of Melor, Laho, Tangga and Tangga Barat gas fields. The gas from these fields contains relatively high level of CO2 compared to the other developed gas fields in the area. As such, acid gas removal technology will be applied to remove excess CO2 to meet market specification. Like the Kumang cluster, the development of the Tangga Barat Cluster also will be carried out in two phases, where Phase I consists of the development of Tangga Barat, Laho, and Melor while Tangga will be developed in Phase II. Phase I development consists of one CPP and two satellite drilling platforms with a total of 27 development wells. Gas produced from this project will be transported to shore via the existing Resak facility to meet the Peninsular Malaysia's gas demand.
 
The Kinabalu Non-Associated Gas (NAG) project comprises two fields -- Kinabalu East and Kinabalu West -- located about 52km from Labuan in water depth of 55 metres. The Kinabalu NAG development is part of the Sabah Integrated Gas Development Project initiated by PETRONAS. The gas and condensate will be delivered to the Sabah Oil & Gas Terminal and the Labuan Gas Terminal. The development of the project calls for the construction of one CPP and one satellite drilling platform with a total of 13 development wells.
 
The Dulang field is situated about 170km offshore Kerteh, Terengganu in Block PM6 in water depth of 76 metres. The field was discovered in 1981 and has been in production since March 1991. The Dulang production facilities include three satellite platforms and a mother platform known as DL-B. The new unit of the compression module will enhance the compressed gas capacity at DL-B by 50 mmscfd.