Malaysian-listed oil and gas services provider Tanjung Offshore has secured a maintenance contract worth MYR250 million (USD66.6 million) from oil company, Petronas Carigali.
The contract was signed by its wholly owned subsidiary, Tanjung Offshore Services, and would involve the maintenance of Petronas Carigali’s offshore and onshore facilities in Sarawak, Malaysia.
The contract will run for two years with the option for Petronas Carigali to extend it until 15 January 2018, Tanjung said in a filing to the Bursa Malaysia.
The contract will have no effect on the issued and paid-up capital of Tanjung Offshore and is expected to contribute positively towards the earnings and net assets per share of the company for the financial years ending 31 December 2015 to 31 December 2018.
Previously, Tanjung Offshore was awarded an Engineering Procurement Installation Commissioning (EPIC) contract worth MYR200 million from Petronas Carigali in September 2014. The contract comprises the provision of EPIC facilities for the Operational Reliability & Integrity Gauging of Instrument based Safeguards (ORIGInS) project that covers both Peninsular Malaysia and East Malaysia.
The ORIGInS project is an initiative from Petronas Carigali to improve all automated safeguard items under the process shutdown system and fire and gas detection systems across its upstream facilities, whether pneumatic, hydraulic, or electronic-based by identifying potential deficiencies in these automated safeguards. The duration of the contract is for three years effective from 5 September 2014, with the option to extend for an additional one year period until 5 September 2018.