Barakah Wins Pipe Replacement Contract for Labuan Crude Oil Terminal

Barakah Offshore Petroleum’s subsidiary, PBJV Group, has received the Letter of Award (LoA) from Sabah Shell Petroleum Company (SSPC) to provide effluent discharge pipeline replacement for Labuan Crude Oil Terminal.

Labuan Crude Oil Terminal (LCOT), operated by SSPC, is a facility that receives, dehydrates, stores and exports crude from fields located offshore Sabah which are operated by SSPC, Petronas Carigali and Repsol.

The processed crude is then exported to tankers and the produced water is treated prior to disposal into the South China Sea via the effluent discharge pipeline, the company explained.

The contract involves engineering, procurement, construction, installation and commissioning (EPCIC) of a new effluent discharge pipeline in LCOT.

As Barakah explained, the transportation and installation shore approach involves the stringing of the new pipeline in the beach area in the vicinity of LCOT. The pipeline will then be towed into the water and buried under the seabed.

The lump-sum contract with a value of more than RM 25 million (USD 5.6 million) is effective from October 2016 until the completion of the project, estimated to take approximately 2 years.