Thursday, 12th Jan 2023
By: Amanda Battersby
OceanMight wins Shell’s platforms prize
Letter of Award for engineering, procurement and construction contract for FaS gas project offshore Malaysia
Malaysian contractor OceanMight has landed an engineering, procurement and construction contract for wellhead platforms destined for Shell’s MLNG FaS gas fields project offshore Sarawak, East Malaysia.
KKB Engineering subsidiary OceanMight has received a Letter of Award with limited notice to proceed for the EPC of standard wellhead platforms for Sarawak Shell’s MLNG FaS project that comprises the F22, F27 and Selasih gas fields.
“A formal agreement for the… contract will be executed in due course,” KKB said.
This EPC scope started last month and will last until completion of all the work. Upstream understands that the contract is for three platforms — one apiece for each of the offshore fields. The ultimate weight of the structures is not yet known as the project is only at the initial engineering stage.
Upstream has approached Shell with regard to further details of the platforms and the FaS project.
Shell operates the F22, F27 and Selasih fields, which are part of the UK supermajor’s MLNG Extension production sharing contract.
Nearly all the gas that Shell produces offshore Sarawak is supplied to the Petronas LNG Complex and Shell’s own gas-to-liquids project, both located in Bintulu.
Upstream had reported in May 2021 that Shell had plans for further drilling at its F22 and Selasih fields in the coming months.
Risk factors affecting OceanMight’s EPC contract include execution risks such as the availability of skilled manpower and materials, forex and changes in pricing, weather conditions and/or political, economic and regulatory conditions, noted the parent company.
Meanwhile, another KKB subsidiary, KKB Industries, has been contracted to supply mild steel concrete-lined pipes to Seri Ghanimi Contractor.
The two contracts are worth an estimated combined 351.7 million ringgit ($80.5 million).
Updated to confirm that the platforms EPC contract is for three platforms.