Handal Resources Berhad , Malaysia’s integrated offshore services provider is pleased to announce that its joint venture, Borneo Seaoffshore Engineering Sdn Bhd – Handal Engineering Sdn Bhd (known as Borneo Seaoffshore – Handal JV) has received a Letter of Award from PETRONAS Carigali Sdn. Bhd. (PCSB) for the Provision of Water Injection Module (WIM) Supply on Mobile Offshore Unit for Mobile Water Injection Facilities – Package 4 (“Contract”).
This Contract marks Handal’s comeback to the big league with a major contract win. Handal is positioned to leverage on this to aggressively pursue more contracts in the near future. In addition, Handal will capitalise on the strength of its new shareholders led by Seaoffshore Capital Sdn Bhd.
Awarded to Borneo Seaoffshore – Handal JV, the value of this Contract is approximately RM360 million over a duration of seven years. The Contract value will increase if the three years extension option were to be exercised. The primary period begins in March 2020 and is expected to complete by June 2027. With the extension option, the contract will run until June 2030.
Moving forward, the Group’s strategy is to build two income streams; securing strategic long- term contracts from its new business ventures and shorter-term contracts for its current core business.
Management is optimistic that the adoption of a two-pronged strategy will elevate Handal’s financial position by leaps and bounds and become a formidable player in the oil and gas industry. The market is beginning to notice the new Handal’s way forward through the series of announcements recently made by the Group.
Handal Resources Managing Director Mr. Sunildeep Singh Dhaliwal said: “We are very excited with this Contract win in spite of tough competition as we can showcase an innovative and cost-effective solution. We see this business line as the first step in our strategy to reposition ourselves in the Malaysian oil and gas industry. We are pleased that PCSB has entrusted us with this project and we are confident of delivering it safely, on schedule and within budget.
“This new Contract is extremely important, as building our order book has been identified as the cornerstone of our turnaround plan. With the addition of this Contract, our order book will surge to more than RM950 million, which will contribute positively to the Group’s financials until year 2027.
“Handal will continue to pursue contract tenders that will make our presence felt in the oil and gas industry beyond our core crane business. It is our plan to consolidate our business in Malaysia and then expand into the region. The management team brings vast experience and technical knowledge in the oil and gas industry. Anchored on this, we are poised to provide value added services to our respective clients within the industry,” he said.