Upstream reports that Petronas Carigali, the upstream arm of Malaysia’s national oil company, has chosen Muhibbah Engineering for an engineering, procurement and construction (EPC) package for wellhead platforms on the Sepat integrated redevelopment project offshore Kuala Terengganu. The EPC work for the platforms is scheduled to commence this month, according to the publication.
Citing information from Muhibbah Engineering, Upstream notes that the newly awarded scope is a relatively small EPC portion of the wider Sepat programme and is valued at about 700 million to 850 million ringgit (US$172 million to US$208 million).
The company has indicated that execution of the contract is due to start this month and is expected to be completed by the first quarter of 2029. Muhibbah Engineering said the award is expected to contribute positively to the group’s earnings and net assets, Upstream reports.
According to Upstream, the Sepat integrated redevelopment project is built around a newbuild floating production, storage, and offloading (FPSO) unit. The trade journal states that Singapore-based contractor OceanStar Elite is viewed by industry sources as being in a strong position to secure the FPSO contract.
Upstream previously reported that the redevelopment scope also covers two additional wellhead platforms, Sepat-B and Sepat-C, together with a subsea pipeline network.
The publication adds that the Sepat field has been on stream for more than 10 years and currently consists of the existing Sepat-A wellhead platform and a floating storage and offloading vessel.
Upstream states that it has requested further details from Petronas Carigali and Muhibbah Engineering regarding the new award.
The outlet also recalls that Muhibbah Engineering has an established relationship with Petronas, including an engineering, procurement, construction, installation, and commissioning contract related to the Gansar gas condensate discovery in 2022.
Source: Upstream
