Shell, Petronas let preliminary contract for Malaysian gas plant

Shell PLC subsidiary Sarawak Shell Bhd. (SSB) and partner PETRONAS Carigali Sdn Bhd, through contractor Samsung Engineering Co. Ltd., have let a preliminary contract to KKB Engineering Berhad (KKB) subsidiary OceanMight Sdn. Bhd. to provide manufacturing and supply of equipment for the onshore gas plant (OGP) that will process deepwater sour gas from the operators’ Rosmari-Marjoram gas project offshore Malaysia (OGJ Online, July 13, 2022).

On Apr. 10, OceanMight received a purchase order contract from Samsung Engineering (M) Sdn. Bhd. under which the KKB division will deliver module fabrication and supply of steel structures for SSB’s Rosmari-Marjoram OGP in Bintulu, Sarawak, Malaysia, KKB said in a release.

Valued at about $25.3 million, a formal contract for the purchase order will be executed in due course, the service provider said.

KKB said its work on the OGP will parallel the duration of Samsung Engineering’s contract, which is scheduled to be completed in third-quarter 2024.

The April purchase order contract follows the partnership’s September 2022 final investment decision (FID) to move forward with the project, as well as its award of a $680-million contract to Samsung Engineering in July 2022 for delivery of engineering, procurement, construction, and commissioning (EPCC) for the proposed OGP (OGJ Online, Sept. 6, 2022).

With a nameplate processing capacity of 800 MMcfd, the OGP will process natural gas produced from the Rosmari-Marjoram project in Block SK318, about 220 km offshore Sarawak, beginning in 2026.

With 80% equity in the SK318 production sharing contract (PSC), SSB serves as operator alongside partner PETRONAS Carigali Sdn Bhd (20%).