IEV Starts Decommissioning Project Offshore Malaysia

Catalist listed, IEV Holdings Limited announced that it commenced a second turnkey decommissioning project for an established oil and gas operator in Malaysia (the “Second Decommissioning Project”), in an addition to the one secured earlier in June 2011.

This is pursuant to the receipt of an award of contract by its 30% associate, IEV (Malaysia) Sdn. Bhd. (“IEV Malaysia”), from the same customer on 10 November 2011. The actual commencement of the Second  Decommissioning Project, although awarded on 10 November 2011 and accepted by IEV Malaysia on 16 December 2011, was subject to the finalisation of execution plans carried out by the Group.

The Group recently agreed and finalised the aforesaid execution plans with the relevant customer on 27 December 2011. The contract value of the project amounted to RM12 million. The scope of work of the Second Decommissioning Project, which covers the provision of turnkey project management including Engineering, Preparation, Removal and Disposal (“EPRD”) of a vent platform and associated pipelines, is in addition to a previously awarded decommissioning project in June 2011 by the same customer.

The Project is scheduled to commence in December 2011 and is expected to be completed  in 1H2012. Engineering work for both decommissioning projects (including one awarded in June 2011) has  commenced and is expected to be completed by 1Q 2012 and site execution for both projects will commence in 2Q 2012 as an integrated offshore campaign, after the monsoon season.

President and CEO, Mr Christopher Do, said, “Decommissioning of ageing offshore structures is a relatively new business segment in the Asia-Pacific region with great potential as the earliest structures installed in the 1970’s are coming  to the end of their  lifespan. The award of this project adds to the testimony of IEV’s capability and capacity to undertake turnkey projects, especially in the field of decommissioning, where the Group has a well proven track record. The prospects of this business segment present many possible opportunities for the Group and makes it a good growth strategy for us.”

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Offshore Energy Today Staff, December 28, 2011; Image: IEV Group