MMHE secures Jerun EPCIC contract from SapuraOMV

KUALA LUMPUR, April 13 -- Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) has secured a contract from SapuraOMV Upstream (Sarawak) Inc to undertake engineering, procurement, construction, transportation & installation, and hook-up & commissioning services (EPCIC) for the SK408W Jerun development project, offshore Sarawak.

MMHE is a wholly-owned subsidiary of Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), an integrated and complex solutions provider for the oil and gas industry.

In a filing with Bursa Malaysia today, MHB said the EPCIC contract comprises the construction of an approximately 15,000-tonne topside, 10,000-tonne jacket and 5,000-tonne piles of Central Processing Platform (CPP).

The contract includes design engineering of a 76.2-centimetre carbon steel pipeline with a length equivalent to 80 kilometres distance from the CPP to an existing E11R-B platform to commingle with the existing trunkline to the Petronas Malaysia LNG Plant in Bintulu, Sarawak.

Upon completion, the facilities will be installed in the Jerun gas field, which lies in the SK408W Block located offshore Bintulu.

SapuraOMV Upstream (Sarawak) Inc is the operator of SK408W Block, with Sarawak Shell Bhd and Petronas Carigali Sdn Bhd each holding 30 per cent stake.

MHB managing director and chief executive officer Pandai Othman said the industry is getting back on an upturn after the slowdown in 2020 due to the low oil price and COVID-19 pandemic, resulting in capital expenditure cutback by oil and gas giants.

“This year has been coined as our recovery year and what a better way to start it other than with a major EPCIC project like Jerun.

“With this being our first project with SapuraOMV, we hope this marks the beginning of a long-lasting business relationship and mutual support between the two companies,” he said. 

In a press statement today, SapuraOMV said the Jerun gas field development is its latest and largest operated project and is expected to produce 500 million standard cubic feet per day (mmscfd) of gas when it comes onstream in 2024.

"Gas produced from the field is expected to be sold to customers in Bintulu, including to the Petronas LNG Complex," it said.

The Jerun development is SapuraOMV’s third major upstream gas development project in Sarawak and Sabah, following the development and commencement of production from the SK310 B15 gas field in 2017, and the completion of the SK408 Phase 1 development comprising Gorek, Larak and Bakong fields in 2019/2020.

"Currently, the gross production from these fields is about 575 mmscfd.

"When Jerun comes onstream, it will add 500 mmscfd of production, making SapuraOMV one of the largest gas suppliers in Sarawak," it added. 

SapuraOMV chairman Tan Sri Shahril Shamsuddin said Jerun was part of the company's strategic investment to become one of the leading independent operating companies in the region. 

-- BERNAMA