Report Petronas invites bids for Besar gas field

by **Cals** Mon 20 Jan 2014, 18:49

Report Petronas invites bids for Besar gas field

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 20 January 2014 12:36

KUALA LUMPUR (Jan 20): Petronas Carigali Sdn Bhd has invited bids for its Besar gas field (for two wellhead platforms), according to international oil & gas news portal Upstream Online.

Besar gas field is located offshore Peninsular Malaysia.

This piece of news was reported on the official website of Upstream Online. Alliance Research, quoting Upstream Online in its research note today, reported the bids are due at the end of February.

It said the initial contract award is slated for the end of this year, with a separate tender for installation to emerge later on.

“The contract value will be RM100 million to RM150 million for both wellhead platforms. Malaysian players might have advantage for the Besar project,” said Alliance research analyst Arhnue Tan.

She continues to rank the oil & gas (O&G) sector as ‘overweight’ as robust contract flow is expected to come from marginal fields, enhanced oil recovery projects and new gas developments.

“Our top pick is SapuraKencana Petroleum Bhd. We also like Bumi Armada and small caps like Deleum Bhd,” Tan said.

Also quoting Upstream Online, Tan reported that Malaysia Marine and Heavy Engineering Holdings Bhd has been shortlisted by Chevron to be among the five yards to build the Ubon central processing platform (CPP).

She opined that TH Heavy Engineering Bhd may participate in the Ubon CPP project, as McDermott International which controls a 30% stake in TH Heavy, was among those shortlisted.

“The Ubon CPP is slated to be the largest CPP project on tender this year in the Malaysia Thai-JDA with topsides of 20,000 metric tonnes and jackets of 6,000 metric tonnes.

“Nevertheless, no contract award date has been mentioned so far but the facilities are expected to be ready by 2018,” said Tan.

Besides Ubon, Hess has called tender for a floating storage and offloading (FSO) vessel for their North Malay Basin development, according to Alliance.

Furthermore, the Bergading CPP may see a contract announced in May this year. The contract value of the Bergading CPP has been estimated to be around US$1 billion by CIMB Research.

Hess has prequalified three consortiums to participate in the tender running through May 2014. First gas is targeted for end-2016, according to CIMB.

The three consortia are: Hyundai Heavy Industries-Aker Solutions, Samsung Heavy Industries-Ranhill Worley-SapuraKencana, and McDermott-THHE.

But Tan said: “Malaysian players might have the advantage for the Bergading and Besar projects but competition with foreign players will be stiff for Ubon.”