Brooke Dockyard gets 2 fabrication contracts from Petronas

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KUCHING: Petronas awarded two contracts to Brooke Dockyard and Engineering Works Corporation to fabricate wellhead platforms and a jacket for its two offshore projects in Sarawak.

The two offshore projects are Bokor phase 3 re-development and Anjung gas development worth RM479 million.

The first contract package, for Bokor is valued at RM290 million, was awarded on April 12 for the front end engineering design (FEED) and engineering, procurement, construction, installation and commissioning (EPCIC) of three wellhead platforms at the oil field in the Baram Delta, some 45km north-west of Lutong in Miri.

The wellhead platforms are projected to be installed in the first quarter of 2019.

The Bokor phase 3 re-development project, under the Baram Delta enhanced oil recovery (EOR) production sharing contract (PSC), is operated by Petronas Carigali Sdn Bhd in partnership with Sarawak Shell Bhd.

The completion date for the Bokor wellhead platforms is July 27, 2019.

The second contract for Anjung is worth RM189 million and was awarded on April 25.

It was for the provision of engineering, procurement, construction and commissioning (EPCC) of one wellhead platform and jacket.

The Anjung block is about 200km offshore Bintulu in the Central Luconia gas field.

The completion date for Anjung wellhead platforms is Oct 25, 2018.

The wellhead platform will also be installed in the first quarter of 2019 and first gas is expected in December.

Brooke Dockyard will fabricate the structures at its fabrication yards in Sejingkat and in the Demak Laut industrial area.

Sarawak Chief Minister Datuk Amar Abang Johari Tun Openg, Petronas president and Group CEO Datuk Wan Zulkiflee Wan Ariffin and Brooke Dockyard’s chairman Datuk Abang Abdul Karim Tun Openg witnessed the sealing of the contracts at the Kuching Hilton.

Signing on behalf of the national oil company was its vice president of Malaysia Assets, Development & Production Mohd Jukris Wahab while Brooke Dockyard general manager Norhizan Sazali signed on behalf of her company.

The Chief Minister in his address said in the quest for an increase of the oil and gas royalty to the state from 5% to 20%, he has “to be rationale” in his push in the increment at a time when the country’s earnings had been impact by falling world oil price.

Abang Johari said as a result he has to “go through other approaches” to increase the state’s earnings from the oil and gas extracted from its territory.

He did not elaborate and in a media conference after the singing, the chief minister said he could not disclose much as his plans are still “in the formative stage” but would disclose information “bit by bit” from time to time.

He nonetheless disclosed Sarawak is returning to the exploration of oil on land and exploiting marginal field now that new technology had made exploration and development less expensive.

One of the fields the state would revisit is in Baram where Petronas in 2007 awarded a production sharing contract (PSC) to Nippon Oil Exploration Limited and its exploration unit Petronas Carigali Sdn Bhd.

The block was once part of a concession awarded to Shell in 1907.

About 80 million barrels of oil was produced from the field before the block was relinquished by Shell in 1981.

Meanwhile, Wan Zulkiflee said the award of the contracts to Brooke Dockyard was not an indication there is an upturn in the oil and gas industry.

He said the oil price in the world market will be range bound for some more years and the contracts for the Bokor and Anjung projects were based on their individual “merits”. –