Coastal Contracts And Consortium Sign Mexico LPG Deal Worth RM4.5 Billion

Coastal Contracts announced that a consortium led by its joint venture company, Coastoil Dynamic SA De CV (“CD”) had entered into a Service Agreement with Pemex Exploracion and Produccion, a subsidiary of Petroleos Mexicanos, Mexican state-owned petroleum company to undertake an onshore gas conditioning plant project, in Ixachi field, Tierra Blanca, Veracruz, Mexico.

The scope of work for this contract comprises engineering, procurement, construction, operation, and maintenance for the gas conditioning plant and its related infrastructure for a period of 10 years with a contract value of approximately RM4.5 billion.

Coastal states that it had embarked on ventures for an onshore gas conditioning plant project in Mexico together with its business partner, Nuvoil via its joint venture company, CD. Nuvoil is a well-established Mexican company with robust track record in the engineering, procurement, construction, and operation and maintenance of onshore gas plants in Mexico.

Ixachi in comparison with Mexico’s super-giant shallow-water Cantarell field is expected to be the most productive onshore field in Mexico once it hits its peak production.

“We are delighted to have secured the second onshore gas conditioning contract at Ixachi Field in Mexico. Coastal has set foot in Mexico since the year 2013 when Coastal first signed the bareboat charter agreement for AGOSTO-12, the jack-up gas compression service unit for Pemex. AGOSTO-12 is currently in its 6th year working for Pemex at Cantarell Field. This mega-contract win valued at RM4.5 billion is a record winning contract for us in our more than 40 years history. This is also a great achievement for our shareholders who have never stopped believing in our management team and sailed through with us over the challenging years.

Established in 1976 and listed on the Main Market of Bursa Malaysia Securities Berhad since August 2003, Coastal Group has two main business units namely Shipbuilding and Ship Repair Division and Vessel Chartering Division. Shipbuilding and Ship Repair Division specialises in fabrication and sale of Offshore Support Vessels (“OSV”) and
marine transportation vessels whereas Vessel Chartering Division focuses on the vessels transportation and equipment hire services.

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