Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) has received a contract for the Jerun field located in the SK408W Block located offshore Sarawak, Malaysia.

The contract from SapuraOMV Upstream (Sarawak) is for the engineering, procurement, construction, transportation and installation, and hook-up and commissioning services (EPCIC) for the field.

MHB subsidiary Malaysia Malaysia Marine and Heavy Engineering (MMHE) will build approximately 15,000 metric tonnes (mt) topside, 10,000mt jacket and 5,000mt piles of Central Processing Platform (CPP).

The contract includes the design engineering of an 80km-long pipeline to connect the CPP to the existing E11R-B platform.

The new pipeline will connect with the existing trunkline to Petronas Malaysia LNG Plant in Bintulu, Sarawak.

The facilities, upon completion, will be installed in Jerun gas field in the SK408W Block.

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By GlobalData

SapuraOMV Upstream operates the SK408W Block with a 40% stake. Other partners include Petronas Carigali (30%) and Sarawak Shell Berhad (30%).

MHB managing director and CEO Encik Pandai Othman said: “As I have mentioned before, the industry is now getting back on an upturn after the slowdown in 2020 due to the low oil price and Covid-19 pandemic, resulting in CAPEX cutback by oil and gas giants due to the uncertainties in the industry.

“2021 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.”

Last year, SapuraOMV Upstream started production from its operated offshore Bakong gas field project under the SK408 Production Sharing Contract (PSC) in Malaysia.

The first phase of the SK408 PSC development aims to commercialise the gas reserves from Gorek, Larak and Bakong fields.