Lloyd's plans big investments in Malaysia

LLOYD'S Register plans to make substantial investments in the next six to 12 months to expand its business in Malaysia.

Llyod's is an independent provider of assurance to companies operating high-risk, capital-intensive assets in the energy and transportation sectors.

Its president (Asia) John Rowley said the group would be expanding its delivery centre in Malaysia.

"Singapore and Malaysia are our energy hubs for Southeast Asia. We are expanding our network in Kuala Lumpur, especially the engineering and technical delivery centres.

"It will be a significant investment," he said at the launch of the group's groundbreaking rules for floating liquefied natural gas (FLNG) facilities on the sidelines of the World Gas Conference, here, yesterday.

Rowley did not disclose any investment figures but said it was expected to be drawn out in the next six to 12 months.

He said the group was also looking at making acquisitions in Malaysia and the rest of Asia.

"There is a limit to growing business organically. We are looking for organic growth through the acquisition of organisations that can bring skills and technical ability into our organisation."

Region-wise, Rowley said the group planned to grow its business from the current turnover of US$1.4 billion (RM4.44 billion) to US$2.5 billion by 2016.

He stressed that Asia Pacific was key to this growth.

"By 2016, Lloyd's will have doubled its energy business in Asia Pacific to more than US$150 million through growth in the upstream, downstream, power and inspection businesses," he said.

On the set of rules for FLNG facilities, Rowley said Lloyd's used its technical knowledge and experience to publish the world's most comprehensive rules to guide the design, construction and operation of FLNG facilities so that natural gas could be safer, cheaper and have a lower environmental footprint.

He cited that Lloyd's 50-year offshore experience, including its technical knowledge of LNG containment and liquefaction technology, as well as floating, production, storage and offload vessel development and process engineering systems, had allowed it to publish the first set of rules to comprehensively look at all areas of FLNG facilities.

Lloyd's global head of business development and marketing, floating offshore installations, Olivier Boijoux, said there were currently 16 identified FLNG projects expected to be developed within the next 10 years.

"However, only five are progressing, with the remaining 11 FLNGs still in the planning stage. The five FLNG projects that are progressing include the two announced by Petronas," he said.

On Tuesday, Petronas announced that it had awarded a contract to a consortium comprising Technip France S.A, Technip Geoproduction Sdn Bhd and Daewoo Shipbuilding & Marine Engineering Co Ltd to build Malaysia's first FLNG facility.

O&G FDI on our LNG area +1