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PETRONAS has awarded a major 13-package, five-year offshore hook-up, commissioning and maintenance services contract with a total work value of about RM10 billion to six local service providers.
The Pan Malaysia Integrated Hook-Up & Commissioning and Topside Major Maintenance Contract (Pan Malaysia Integrated HUC & TMM Contract) was awarded to Kencana HL Sdn Bhd, Dayang Enterprise Sdn Bhd, Petra Resources Sdn Bhd, PBJV Sdn Bhd, Carimin Engineering Services Sdn Bhd and Sigur Ros Sdn Bhd for a period of five years commencing from 2013.
The contract involves the hook-up & commissioning and maintenance services for offshore facilities and includes all the necessary services -- such as manpower services, marine spread services, and tools and equipment – required for the execution of the respective work scopes.
The six contractors will be providing HUC and TMM services to nine PETRONAS’ Production Sharing Contractors, namely PETRONAS Carigali Sdn Bhd, Sarawak Shell Berhad & Sabah Shell Petroleum Co. Ltd., ExxonMobil Exploration and Production Malaysia Inc., Murphy Sarawak Oil Co. Ltd., Hess Oil and Gas Sdn Bhd, Talisman (Malaysia) Ltd., Newfield Peninsula Malaysia Inc., and JX Nippon Oil & Gas Exploration (Malaysia) Ltd.
Speaking at the launch of the contract package on 14 November, PETRONAS’ Vice President of Petroleum Management Ramlan A. Malek said, “The award of this major contract is PETRONAS’ acknowledgment of the capability of local service providers, including Bumiputera companies.
PETRONAS is committed to providing business opportunities to such companies, and this Pan Malaysia initiative is one such example of our continuous efforts towards this in Malaysia’s upstream services industry.”
The Pan Malaysia Integrated HUC & TMM Contract is one of PETRONAS’ largest service contracts currently in place. It is part of PETRONAS’ continuous efforts to further optimise project deliveries and offshore activities in terms of costs and schedule while at the same time drive and support the growth of capabilities among Malaysian service contractors.
The long-term nature of the contract not only provides for better economies of scale for PETRONAS but is also expected to encourage the respective service contractors to invest in additional assets and allow for better retention and development of experienced workforce.
