Anyone here knows about K5 MOPU tender? What's the progress like? When are results due? Who's the favourite for this project?

Waa S....a they still can meh? Not too much on their plate? What about local M..E? China most likely COOEC?

This post has been edited by contestchris: Sep 8 2018, 11:18 PM

Ok guys, just wanna talk on the fabrication side a bit.

It was said earlier that the K5 MOPU is between S and China company. M is not in it.

Now, S is going to undergo a massive cash call to raise some RM3-RM4bil. They've also just sold 50% of their upstream Australian stake.

M meanwhile has got only ONE major contract left. Which is Bokor. S has got so many and is also well diversified.

In terms of international presence, S is so much better than M, which is very weak internationally.

I always thought M was the superior fabricator to S, but that's not the case it seems any longer. I wonder, what happened in the past 2 years?

Anyways, M is now worth a mere RM1bil. It has zero debt and has RM500mil in net cash.

Could S "buy" M over? Use some of that cash call receipts and bid for M at RM1.2 bil. They get an immediate "rebate" of RM500mil.

To me I just cannot understand the situation at M and whats their gameplan in they keep losing contracts like Pegaga and K5 MOPU which in the past they should have easily gotten. Not to mention S offshore works in foreign countries is better and M has got almost zero overseas presence.

Someone please clarify this for me.

Thanks!

But M has built far more technical and complicated structures, such as the Gumusut Kakap semi submersible and the Malikai TLP. So how’s that?

Talking abt market picking up, I'm hearing that MMHE might finally win their first heavy engineering contract for the year.

Apparently it's for a 1500MT water separation and treatment processing module for the Pluto platform in Australia. I wonder, how significant would something like this be, in terms of contract size? RM100mil? RM500mil? Or more?

Also MMHE is gonna get LOI from Saudi Aramco to be included in their list of LTAs (in partnership with TechnipFMC). Sapura is also going to get the LOI. Total four new additions to the existing 5 LTAs. This should be a good thing for the Malaysian offshore fabrication industry, no?

Not sure about that. But any idea what could be the contract value for Pluto? And the Aramco LOI for MMHE and Sapura, is that good news for local players?

How's MMHE doing these days? I'm looking at one of their jobs (risk). But it seems like while Sapura is nearing insolvency (hence the rights issue) and MMHE is cash rich and has a clean balance sheet, Sapura is the one getting all the major fabrication contracts. Sapura got Pegaga, and not just that but they've got fabrication contracts from faraway Mexico and a big contract in India.

Question is, what the flying heck is happening to MMHE? Will it be unwise to look at join them at this point in time? I'd like to think this is the "darkest before dawn" moment for MMHE but they've simply not got any major fabrication works for 1.5 years and it worries me that there may be deep-rooted issues at the company (reputation and quality being the main ones).

Appreciate your input folks!

They are, indeed. Look at their latest balance sheet. RM6bil in borrowings due in the next 12 months, and just RM680mil cash in hand. Their current liabilities is 2x their current assets. The company is valued at a mere RM1.8bil...it was worth RM30bil a mere 5 years ago. See here: http://disclosure.bursamalaysia.com/FileAc..._FR_ATTACHMENTS

That's why they're selling their best assets and raising fresh capital of RM4.5bil. Without the rights issue, Sapura will be going under. I'm impressed they're going about as if things are BAU, but they're in a pretty dire situation. The only major O&G company which is in a worse position solvency-wise is probably Bumi Armada.

Given the above, it's what makes me really bewildered that Sapura is getting multiple mega fabrication works, while MMHE which on paper has got a bullet-proof balance sheet and Petronas backing is getting NOTHING in 2018!

This post has been edited by contestchris: Dec 22 2018, 12:20 AM

Hmmm, speaking about MMHE: https://www.nst.com.my/business/2018/12/444...nt-saudi-aramco

A few questions:

1) Previously someone mentioned MMHE needs Petronas' "crutches" to survive. If so, how were they able to secure a relatively prestigious LTA with Saudi Aramco?

2) Does the LTA in and of itself mean anything? Does it guarantee a steady flow of contracts? Now there are 10 LTA players, where does the TechnipFMC-MMHE combo stand relative to their competitors? Are they competitive, simply put?

3) The Pluto Water Handling Module fabrication...how significant is this? What kind of a size of contract are we talking about here? RM50mil? RM500mil?

Sadly our once shining start no longer shines. So Sad. RIP Bumi Armada.

Any update on Kasawari? Is it a go for this year? What about the K5 MOPU? Any other major offshore fabrication projects to look forward to in Malaysia in the near future?

Means? Project cancelled?

I heard Limbayong FPSO also they will be eventually getting?


Anyway FSO is usually small right? Not sure how big of achievement this would be.

This post has been edited by contestchris: Feb 1 2019, 09:39 AM

Bumi also vss past few years. Again recently.

Just read that Kasawari KIV till end of 2019 at the earliest. Sarawak State govt wants "more" concessions from federal govt. There's even a risk Kasawari may be shelved. Welp...and here I was thinking Kasawari would be our largest greenfield project in quite a while!

Why lousy? And why accept the job if the client is lousy?

Even MMHE maked a RM120mil loss! https://www.thestar.com.my/business/busines...rm122m-in-fy18/

Sapura, Bumi Armada, Velesto, MMHE...all our oil and gas titans are loss-making despite the oil market recovery in 2018. What gives?

Due to sheer incompetence, or more due to necessity arising from the industry downturn?

Hmm, so this is apparently what's being reported:

Sources said the Sao Vang turret will be built at Malaysia Marine & Heavy Engineering, which is also the designated yard for the FSO conversion.

The FSO will be a converted tanker with storage capacity of 700,000 barrels of condensate and the ability to process 13,000 barrels per day of condensate, according to PTSC.

Guys, to clarify, conversion doesn't include the fabrication of turret? It's considered separate? Also, they say the turret will likely be "supplied" by Promor from Singapore. So MMHE is just a contractor for Promor, or are they referring to different turrets?

Also, how "big" is the FSO conversion comparatively?

This post has been edited by contestchris: Feb 15 2019, 07:46 PM

What module is this referring to?