Shell Sarawak awards Brooke Holding RM421 mil compression project

Abang Johari (fourth left) together with other Sarawak ministers and distinguished guests visiting the Brooke Dockyard Industrial Heritage Museum on Jan 17, 2024.

By Ashley Sim and Karen Bong

KUCHING, Jan 17: Brooke Holding Sdn Bhd has been appointed to deliver the engineering, procurement and construction (EPC) of the Fixed Offshore Structure Works associated with the F6 VLAP Compression Project, valued at RM421 million, for Sarawak Shell Berhad’s facility located offshore northwest of Bintulu.

The contract was officially awarded by Shell Sarawak on July 5, 2023 but the signing ceremony between Brooke Holding and Sarawak Shell only took place today at Hikmah Exchange, witnessed by the Premier of Sarawak, Datuk Patinggi Tan Sri Abang Johari Tun Openg.


The project encompasses the construction of a topside weighing approximately 3,300 metric tonnes, a substructure of 1,900 metric tonnes, and Brownfield tie-in prefabrication along with shiploose items, with a scheduled delivery period of 20 months.

The F6 Hub Complex is positioned roughly 179 kilometres offshore to the northwest of Bintulu, in water with a depth of 85 metres. The primary objective of the project is to reduce reservoir abandonment pressure, thereby enhancing production and gas recovery from the F6 Field through the implementation of external energy – VLAP compression.

Abang Johari highlighted the significance of awarding this project to the local contractor, Brooke Holding, as a testament to the confidence and strong collaboration between the parties involved, including the Sarawak government.

“Thank you very much Shell Sarawak. I hope with this project, it will enhance the technology and implementation approach of more projects to come,” he said when addressing the ceremony today.

Abang Johari (centre) witnessing the exchange of document between Brooke Holding represented by Wan Lizozman (second left) and Shell by Siti Hurrairah during the ceremony at Hikmah Exchange on Jan 17, 2024.

Acknowledging the challenges in the oil and gas industry amid the transition from fossil fuels to alternative and renewable energy sources, Abang Johari affirmed Sarawak’s dedication to fighting climate change and mitigating carbon emissions, collaborating with stakeholders such as Shell, PETRONAS, and Petroleum Sarawak Berhad (Petros) through the Carbon Capture, Utilisation, and Storage (CCUS) strategy.

“This is a very important forward-looking effort from Sarawak and at the same time, we will continue to explore new technologies for converting gas into sweet gas. I am sure that non-consumable gases can be stored effectively. We are actively exploring ways to generate environmentally friendly gas,” he said.

With Petroleum Sarawak Berhad (Petros) appointed as the gas aggregator in Sarawak effective Dec 1, 2023, Abang Johari envisioned that the collaboration between oil and gas entities and the State government will pave the way for well-organised partnerships under the authority of the Sarawak government.

“Sarawak wants to be a negative player (in carbon emission) in the oil and gas industry, especially during this transitioning period by making substantial strides in carbon reduction,” he emphasised.

Earlier on, Siti Hurrairah Sulaiman, the senior vice president Upstream Malaysia and Country Chair Shell Malaysia shared insights into the project, stating that the integrated compression, power generation, and utility platform will be constructed at Brooke’s Demak fabrication yard.

“Prior to this, Shell has awarded Brooke 14 other projects and hence with today’s event, the F6 VLAP is the 15th project awarded by Shell to Brooke.

“This just goes to show how the partnership between Brooke and Shell has grown over a long period of time. It also demonstrates our confidence in a local fabricator. We are truly proud of the ‘Kamek Boleh’ spirit of Sarawakians,” she said.

Siti Hurrairah anticipates attending the load-out ceremony in the near future, expressing hope for the facility’s timely completion within the designated budget and, most importantly, ensuring safety.

Minister of Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahmah Hamzah, Deputy Minister of Creative Industry and Performing Art Datuk Snowdan Lawan, Deputy Minister of Infrastructure Development Datuk Ir Aidel Lariwoo and Satok assemblyman Dato Ibrahim Baki and Brooke Holding director Dato Sri Dr Wan Lizozman Wan Omar were among those present. — DayakDaily