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Friday, May 16, 2014

TH Heavy bags RM1.2b Layang Development FPSO contract (Edge)

TH Heavy Engineering Bhd announced that it has received a letter of award from JX Nippon Oil & Gas Exploration (Malaysia) Ltd for the provision of a floating production storage and offloading (FPSO) vessel for the Layang Development Project.

Under the contract, TH Heavy will be responsible for the provision of engineering, procurement, construction, installation and commissioning (EPCIC) and leasing of the Deep Producer 1 FPSO until Nov 17, 2023.

The contract has extension options for the lease of the FPSO facilities of one year, up to a maximum of 10 years from Nov 18, 2023.

The contract is valued at RM1.2 billion (US$372 million) for the primary period, with an additional potential of up to RM1.47 billion (US$457 million) should the "full extension options" be exercised.

“The award is expected to contribute positively towards the earnings and net assets per share of the company for the financial year ending 31 December 2014 and thereafter over the entire lease period,” said TH Heavy in its announcement.

FPSO Deep Producer 1 is owned by Floatech (L) Ltd, an 80% subsidiary of TH Heavy engaged in owning and operating the vessel.

The Layang Development Project is located in Block SK10, offshore Sarawak, Malaysia.

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