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Malaysian Marine and Heavy Engineering Expertise

24.03.2015 / Energyboardroom

Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) began as Malaysia’s first shipyard in 1973. Over the years, the company moved into the oil and gas sector and became involved in more substantial projects. Privatized as a wholly-owned subsidiary of MISC Berhad in 2006, MHB subsequently undertook an IPO in October 2010 to raise the funds necessary for further yard development and increased corporate independence. Upon celebrating its 40th anniversary in 2013, the company stood proudly as a globally-diversified group hosting Malaysia’s and Southeast Asia’s largest offshore construction, conversion and marine repair facility.

The company has every reason to be proud of recent achievements, especially given its contribution to several milestone projects in new frontiers for Malaysia’s oil and gas sector, namely deepwaters and enhanced oil recovery (EOR). MHB constructed the Kikeh floating production, storage and offloading unit (FPSO), the first deepwater FPSO in Malaysia in 2007, as well as the Kikeh Truss SPAR, the first such platform to be installed outside of the Gulf of Mexico. The 40,000 ton Gumusut-Kakap semi-floating production system (FPS), constructed by MHB stands as one of the largest such facilities in the world to have been fully built and integrated on land, while the 18,000 ton Tapis-R deck completed by the company acts as the central processing facility for the Tapis EOR project, Malaysia’s first full field EOR initiative.

Another exciting development is the Technip-MMHE Joint Venture (TMJV), established in July 2011 to provide complex and world-class engineering, procurement, construction, installation and hookup/commissioning (EPCIC) services for the global oil and gas industry. TMJV combines Technip’s project management and design engineering expertise with MHB’s fabrication capabilities. Furthermore, this initiative is unique in that engineering and fabrication, and even procurement, are generally disassociated, creating a lagging effect and increasing delivery time for projects. The beauty of TMJV is that it combines these three elements, with Technip and MHB acting as equal partners in a 50/50 joint venture based upon a common interest to aid each other and successfully deliver projects to customers.

Since its establishment, TMJV has been awarded two substantial projects from major oil and gas clients. The first project is the engineering, procurement and construction contract for the Malikai Deep-water Tension Leg Platform (TLP) for Sabah Shell. The first project of its kind in Malaysia, the Malikai TLP consists of a 14,000 MT topside and a 12,000 MT hull. The second project was awarded by PETRONAS Carigali for two gas fields in Block SK316. TMJV will complete EPCIC work for a central processing platform, a bridge-linked wellhead platform and a 75-kilometer pipeline.

At the same time, MHB has recently completed the major steps in a significant transformation process to bring improved operational performance, project delivery and accountability in the yard, as well as accelerated efficiency and effectiveness. The process has included a 2012 yard optimization initiative, in which MHB expanded its yard size and capacity with the acquisition of new land for the fabrication of offshore oil and gas related structures, to cater to EPCIC works. The decreased costs for both MHB and their clients that have resulted from the transformation process have improved MHB’s already strong client relationships.

A key contributor to Malaysia’s oil and gas hub ambition as one of the largest fabrication yards in the region and beyond, MHB strives to increasingly meet client demands all the while ensuring safety for employees, partners, vendors and subcontractors working in its two MMHE yards. Although lower oil prices will inevitably affect the entire supply chain to an extent, MHB remains ambitious and will continue to be competitive through cost cutting measures and its regional and international project perspective.


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