12 October 2010
Marine conversion and repair division expected to grow with yard optimisation exercise.
This divisionfocuses on: 1) the conversion of vessels such as VLCCs and Aframax tankers to Floating Production Storageand Offloading (FPSOs) and Floating Storage Offloading (FSOs); and 2) the repair, refit and refurbishmentservices for a wide range of energy vessels which it markets via its JV with Samsung Heavy Industries. Servicesare performed only in the Pasir Gudang yard where the drydock facility for marine conversion is one of thelargest in the Southeast Asia region in terms of tonnage. There are plans to lift the contribution of this divisionby increasing the yard capacity. Currently, the E&C division takes up most of the capacity, thus limiting thespace available for marine conversion and repair division.
Table 3: Snapshot Of Pasir Gudang And Kiyanly YardsPasir Gudang Kiyanly
Operated and owned by MMHE Operated by MMHE TPGM Turkeminisatn on behalf of PetronasCarigali (Turkmenistan) S/b150.6 hectare complex with 1.8km seafront43.6 hectare complex5 open fabrication areas covering 321,400 m2Ability to fabricate up to 25,000 MT p.a.35 fully covered workshops totaling 99,000 m22 dry-docks accommodating vessels up to 450,000 dwt and liftships/structures up to 50,000dwtAbility to construct large marine structures with a total tonnageof 69,700 MT p.a.Capable of undertaking any single structure up to 40,000MT
Source: MMHE Prospectus
Only seven licensed offshore fabricators in Malaysia.
There are only seven fabricators with a licence tofabricate offshore oil and gas structures; MMHE, Sime Darby, Kencana, Boustead Heavy Industries, BrookeDockyard, Ramunia and Oilfab. MMHE tops both in terms of annual tonnage capacity and market share, whileSime Darby comes in second, unsurprising given both are backed by large holding companies (Petronas andSime Darby). Going forward, Kencana also plans to gain deepwater experience and has already upgraded itsyard space to accommodate larger and higher-end structures.
Table 4: Malaysian Fabrication Yards
ShiyardCompanyAnnual TonnageCapacityMarketShare (%annualtonnagecapacity)FabricationArea (m2)MaximumSkid TrackTonnageDeepwaterExperience
MMHE , Pasir GudangMMHE 69,700 27.30 321,400 40,000 YesSime Darby , Pasir GudangSime Darby 60,000 23.50 NA 15,000 NoKencana, LumutKencana HL 48,000 18.8 560,500 20,000 NoBoustead, PenangBoustead 9,000 3.5Up to 3 setsof topsides/ jackets4,000 NoBrooke, Sejingkat BrookeDockyards8,500 3.3 63,500 4,000 NoSime Darby, Teluk RamuniaFabrication Yard ASime Darby 10,000 3.9 124,064 6,000 NoSime Darby, Teluk RamuniaFabrication Yard BSime Darby 30,000 11.8 292,010 11,000 NoSime Darby, Teluk RamuniaFabrication Yard BSime Darby 20,000 7.8 155,312 10,000 No
Source: MMHE Prospectus, ODS-Petrodata
Focus on shallow-water developments in the near term.
There is still much interest in the older shallow-water developments as Petronas looks to sustain the nation’s production and to make sure that it does not missout on any untapped reserves. Its importance was evident when the need to continue developing existing fieldswas mentioned and highlighted in the Economic Transformation Programme (ETP) open day as part of the “Sustain” step for the oil and gas sector. Notable projects up for grabs in the near term include: 1) Topsidemaintenance projects worth RM1.7bn; and 2) ExxonMobil commitment of US$2.1bn to develop Tapis and sixother oil and gas fields, namely, Seligi, Guntong, Semangkok, Irong Barat, Tabu and Palas.
Malaysian oil and gas developments going deeper.
According to ODS-Petrodata, Malaysia has focused ondeepwater fields since 2002 as the shallow water fields are becoming mature. At present there are sevendeepwater fields that are currently being developed or will enter the development phase over the next threeyears. The Kikeh field has been on-stream since 2007, while the Gumusut-Kakap field is widely believed to benext, given that fabrication on the semi-submersible which would be used for it has just begun.
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