Sarawak-based integrated energy support services provider, Ocean Vantage Holdings Bhd via its wholly-owned subsidiary, Ocean Vantage Engineering Sdn. Bhd., has on 5 April 2022 clinched an RM71.3 million contract to provide civil, building, and pilling works for a new onshore gas plant owned by Petroliam Nasional Bhd known as the Additional Gas Sales Facilities 2 at Bintulu, Sarawak or BAGSF-2
The contract was awarded by Petrofac Engineering Services (Malaysia) Sdn. Bhd. (“Petrofac Malaysia”) who is appointed by Petronas Carigali Sdn. Bhd., a subsidiary of Petronas, as the main contractor for the gas plant.
Petrofac Malaysia is part of Petrofac Limited, a UK-based leading energy services company listed on the London Stock Exchange with a market capitalization of GBP540 million. Petrofac has 8,500 employees across 30 offices globally.
Executive Director of Ocean Vantage, Mr. Stephen Yau Kah Taksaid, “We are very honoured to be selected by Petrofac Malaysia to participate in this large-scale gas plant in Bintulu that has the capacity of 390 million standard cubic feet per day (“MMSCFD”) upon completion.
Ocean Vantage being a local Sarawakian company makes this moment more special. Of course, apart from familiarity with the local operating environment, I believe our Group’s experience, technical know-how and proven delivery track record weighed heavily in tipping the scale towards us.”
“It is noteworthy to highlight that as this is a gas plant, even the civil, building and pilling works require specialized knowledge, skills and handling to do it well and more importantly, safely. This also explains why we can get healthy profit margin in the mid-teens range for this project as compared to single-digit margin in normal contracting jobs.”
“We have great working relationship with Petrofac Malaysia so far, and we believe this project will further bring us closer, growing from strength to strength together. Meanwhile, this Contract also marks a meaningful breakthrough for us into downstream oil and gas activities, as we are more heavily involved in upstream works in the past. It is our goal to have a more balanced exposure in both upstream and downstream segments.”
Looking ahead, given the prevailing high crude oil price that is projected to sustain at least in the near to midterm, the Group sees many opportunities as capital expenditures (“capex”) is flowing again. Petronas has said it is allocating RM20 billion capex a year from 2022 to 2027, with 60% set for domestic spending. Meanwhile, Sarawak Chief Minister Tan Sri Abang Johari Openg announced in February 2022 that the state is exploring new oil and gas blocks onshore and offshore to ensure sufficient volume to power Sarawak’s journey towards industrialization.
“It is interesting time for us, that’s for sure. There are so many activities taking place in Sarawak and Bintulu is the place to be – it’s where all the actions are. Against this backdrop, we are confident to clinch more jobs in the near future, and look forward to sustaining our growth momentum in our financial performance – both top and bottom-line.”
Commencing on 1 April 2022, Ocean Vantage expects to complete the temporary site facilities works by 2 June 2022, while the civil, building and piling works are slated to finish by 30 April 2023. As such, the Contract shall contribute positively to the earnings of the Group for the financial year ending 31 December 2021 (“FY2021”) and FY2022.
