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Petroliam Nasional Berhad (PETRONAS) has recently awarded the Pan Malaysia Integrated Offshore Installation Contract covering domestic upstream oil & gas offshore Transportation and Installation (T&I) activities for a period of three years commencing Year 2014.
The contract, which was a competitive tender open to both local and international companies, involves the transportation and installation for offshore facilities and includes all the necessary services required for the execution of the scopes such as marine spread services, required tools, specialized equipment and manpower services.
The total work value under this contract is estimated to be almost RM 10 billion, spread over four packages, and was awarded to three capable local offshore installation contractors (OICs) namely TL Offshore Sdn Bhd, PBJV Sdn Bhd and GOM Resources Sdn Bhd.
A similar exercise was first introduced in 2010 wherethe long-term nature of the contract was proven to be beneficial in terms of economies of scale for PETRONAS. Additionally, it provides reassurance to the respective OICs to invest in additional assets and the development of other aspiring local players in the field.
Encik Ramlan Abdul Malek, Vice President of Petroleum Management of PETRONAS in his statement shared the driving strategy for this contract that offers a different approach to ensure maximum local participation meanwhile maintaining high competitiveness and upholding international standards.Two out of the four packages were exclusively open to local barge owners only.
The contract is part of continuing efforts by PETRONAS to further optimize its project deliveries and offshore activities in terms of safety, costs and schedule while ensuring security and availability of the necessary offshore transportation and installation barges to execute work planned by production sharing contractors (PSCs) collectively.
These OICs will be providing T&I services to eleven PSCs namely PETRONAS Carigali Sdn Bhd, Sarawak Shell Berhad & Sabah Shell Petroleum Co. Ltd., ExxonMobil Exploration and Production Malaysia Inc., Murphy Sarawak Oil Co. Ltd., Hess Oil and Gas Sdn Bhd, Talisman (Malaysia) Ltd., PCPP Operating Company Sdn. Bhd., Kebabangan Petroleum Operating Company Sdn. Bhd., Lundin Malaysia B.V, Petrofac Limited Malaysia and JX Nippon Oil & Gas Exploration (Malaysia) Ltd.
