EPCI contract awarded for project in Malaysia-Thailand joint development area

Malaysia Marine and Heavy Engineering (MMHE) has secured an engineering, procurement, construction and installation (EPCI) contract with Carigali-PTTEPI Operating Company (CPOC) for wellhead platforms, subsea pipelines and host tie-in works in the Gulf of Thailand.

Under the contract valued at approximately RM 1.4 billion (more than €302 million), the subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) will deliver the work for the Joint Development Area (JDA) Field Development Project (Phase 6) located in the Malaysia-Thailand Joint Development Area (MTJDA).

The scope includes the construction of five wellhead platforms weighing an average of 2,000 metric tonnes, designated as ADC, ADD, ADE, JKC and JKD, as well as work on five associated subsea pipelines and telecommunication upgrades.

Once completed, the platforms will be installed in a water depth between 55 and 65 meters, in the area under B-17-01 south of the Gulf of Thailand.

MTJDA is an area of overlapping continental shelf claimed by both Malaysia and Thailand, located offshore approximately 150 kilometers from Kota Bharu and 260 kilometers from Songkhla in the Gulf of Thailand.

The area was agreed by the governments of the two countries in 1979 to be jointly explored and exploited for non-living natural resources for mutual and equal benefits.

CPOC is the operator for PC JDA, a subsidiary of Petronas Carigali and PTTEP International Limited (PTTEPI), a wholly owned subsidiary of Thailand’s PTT Exploration and Production Public Company Limited (PTTEP), the contractors of the MTJA under the production sharing contracts (PSCs) for Block B-17-01.

The contract is said to represent the company’s third “major” win within the last one-year period, following awards for the Rosmari-Marjoram and Kasawari projects from Shell and Petronas, respectively.

“These new developments signify the recovery of the oil and gas industry in the region after a period of slowdown due to the pandemic. We are prepared for a busy time ahead for the industry by reactivating the East Yard as prompt and ready response for upcoming demand,” said Pandai Othman, Managing Director and Chief Executive Officer of MHB.

“We are honoured to be entrusted with such a significant project from CPOC and to contribute to the success of lasting diplomatic ties between Thailand and Malaysia.”