The new entity will provide engineering and PMC solutions for Leighton’s international engineering, procurement, construction, installation and commissioning services, and its life of field services business.
Leighton Offshore CEO Peter Cox said that the company is increasing its oil and gas business internationally from its headquarters in Malaysia, and strengthening its engineering and PMC capacity is a core element of its growth strategy.
The new business was developed by Leighton following its acquisition of DPS Bristol (Malaysia)’s oil and gas engineering consulting business.
In addition, Leighton will provide technical, procurement and management support to DPS Consultant Malaysia, which provides oil and gas consultancy services in Malaysia.
Leighton Engineering has also secured its first contract, worth $10m, from Iraq’s South Oil Company.
Under the contract, Leighton Engineering will carry out detailed engineering of two offshore platforms for the $518m Sealine Project, and will assist with the procurement and follow-on engineering for the two platforms.
The Sealine Project involves the design, construction and installation of two offshore platforms, a 75km 48in oil pipeline and a single point mooring system.
The project follows on from the $800m ICOEEP project being undertaken by Leighton Offshore.
"We have made a business decision to focus our engineering and EPIC capability in Kuala Lumpur, where there is a wealth of oil and gas experience and a competitive engineering talent base for oil and gas projects," says Cox. "We are proud to be bringing world-class projects, such as the Sealine Project, to be performed here supporting investment and new jobs in Malaysia."