Technip and MMHE joint force to gets contract from Petronas

A joint venture of Technip and and Malaysia Marine Heavy Engineering (MMHE) has been confirmed as the winner of a Petronas tender for a lucrative multi-platform development at Block SK 316 off Sarawak, Malaysia.

The pair beat closest rival McDermott of the US, bidding jointly with local player TH Heavy Engineering, to take the coveted engineering, procurement, construction, installation and commissioning contract for the Petronas-operated project to develop two gas fields.

French giant Technip and its Malaysian sidekick were also up against Italy’s Saipem, which was believed to have submitted the lowest bid, in the close-fought design contest.

However, Petronas said in a terse statement issued on Friday “the most competitive bidder has been identified as the Technip-MMHE joint venture”.

The local content contribution of the pairing may have swayed the Malaysian state oil and gas company’s final award decision in its favour.

No value was though disclosed for the contract award, which is believed to be the biggest platform-based engineering, procurement and construction deal to be handed out this year in Malaysia.

Block operator Petronas is targeting a phased development of the NC3 and NC8 discoveries, timed to support the start-up of a ninth liquefied natural gas train already entering into construction at its Bintulu LNG complex by 2015.

The combined development of NC3 and NC8 will deliver 600 million cubic feet per day of gas to LNG train nine at the Bintulu complex.

Petronas is drawing up another development plan for the Kasawari field, also in Block SK316, also intended to feed the new train at Bintulu.