MHB secures RM1.2 bil subcontract for offshore substation from Petrofac

KUALA LUMPUR (Nov 29): Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has secured a subcontract for an offshore substation (OSS) high voltage direct current (HVDC) platform from Petrofac International (UAE) LLC worth RM1.2 billion.

The OSS HDVC platform will comprise a topside, weighing approximately 30,000 tonnes (including equipment), and a jacket, weighing approximately 10,000 tonnes, for the Ijmuiden ver Alpha Project, MHB said in a filing on Bursa Malaysia on Wednesday.

The scope of the subcontract, which was awarded to MHB’s wholly owned subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), consists of construction engineering, fabrication, mechanical completion, load out and sea fastening, and architectural works on an engineering, procurement and construction (EPC) basis.

The duration of the subcontract is approximately 54 months with fabrication to begin in 2025 and be completed by 2028.

“In addition, MMHE and Petrofac will collaborate towards the possibility of fabrication works for two additional units of OSS of similar size,” MHB added.

Prior to the subcontract, MMHE and Petrofac had entered into an early works agreement back in July 2023, where, according to MHB, MMHE has begun the preparatory works and deployment of key personnel for design and constructability support in line with Petrofac’s targeted delivery of the OSS for TenneT’s 2GW Programme in the Netherlands.

The 2GW Programme is an energy transition programme to make Europe the first climate-neutral continent by 2050 by the Netherlands national electricity transmission system operator TenneT. The programme seeks to provide Europe and its inhabitants with more green energy in a safe and cost-effective way — with the lowest possible environmental impact.

“We are truly honoured to support TenneT’s 2GW Programme with our client, Petrofac, whom we would like to express our gratitude for entrusting us with this monumental project. This represents a significant achievement for MHB on two fronts that we have been diligently pursuing — venturing into the renewable energy sector and establishing our presence internationally,” said MHB managing director and chief executive officer Pandai Othman.

“Gearing up for fabrication works, MHB will be expanding further the reactivation of MMHE East yard which will be utilised alongside MMHE West yard in delivering this project,” he added.

At the time of writing, MHB shares were trading up two sen or 4.3% at 48 sen apiece with a market capitalisation of RM767.74 million.