Business

Published: Tuesday October 18, 2011 MYT 3:23:00 PM

ExxonMobil signs RM236mil deal with Malaysia Marine


KUALA LUMPUR: ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI), a subsidiary of Exxon Mobil Corporation, has signed a RM236 million contract with Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) to fabricate facilities for the Telok Gas development project in offshore Terengganu.

Its chairman and president Hugh W. Thompson said MMHE will fabricate and construct the topsides and platform jackets for the project operated by ExxonMobil.

"The project will involve installation of two gas satellite platforms, Telok A and B, tied back to the existing Guntong gas hub and the installation of facilities is planned to commence in the third quater of 2012," he said in his speech at the contract signing ceremony here today.

He said 14 development wells are planned in the project which is expected to start in the first quarter of 2013.

"This will provide additional supplies for Malaysia's power and industrial needs and also help promote the overall growth of the natural gas sector," he added.

Thompson said an estimated 1,400 workers will be involved in various aspects of the fabrication, project management and support services at the yard and at the site and main offices.

"The fabrication work will take appoximately 18 months and during this period, we expect that the presence of the large project workforce will also be contributing towards the local economy," he said.

At the ceremony Thompson represented EMEPMI while MMHE was represented by its managing director-cum-chief executive officer Dominique De Soras.

De Soras in his speech said the project comprises two topsides and two corresponding jackets supporting the platforms.

"The topsides, known as Telok A and Telok B, are unmanned facilities wellhead topsides with an estimated weight of 1,735 metric tonnes (MT) and 1,648 MT respectively.

"Both topsides are expected to produce 450 million standard cubic foot (MSCF) of gas per day in the Telok field offshore peninsular Malaysia (Terengganu)," he added. - BERNAMA

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