Shell picks Barakah for pipeline replacement gig in Malaysia

  • Business & Finance

Barakah Offshore Petroleum Berhad’s wholly-owned subsidiary company, PBJV Group, has received a Letter of Award from Sabah Shell Petroleum Company (SSPC) for the provision of effluent discharge pipeline replacement for the Labuan crude oil terminal in Malaysia.

The Labuan crude oil terminal (LCOT) is an SSPC-operated facility that receives, dehydrates, stores and exports crude oil from fields offshore the Malaysian state of Sabah located on the island of Borneo.

The offshore fields are operated by SSPC, Petronas Carigali, and Repsol via two incoming trunk lines. The processed crude is then exported to tankers, and the produced water is treated before being disposed into the South China Sea via the effluent discharge pipeline.

Barakah said on Thursday that the contract involves engineering, procurement, construction, installation and commissioning of a new effluent discharge pipeline on the terminal.

The lump-sum contract has a value of more than RM25 million ($5.7 million) and is effective from October 2016 until the completion of the project which is estimated to last for approximately two years.

The company added that the transportation and installation would involve the stringing of the new pipeline in the beach area in the vicinity of the LCOT. The pipeline will then be towed into the water and buried under the seabed.

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