Guys, I see that Mubadala has advertised two high level positions in late July 2017 on LinkedIn for Pegaga. Does this mean the FEED stage has concluded and the bidding is in progress...and that the project is on the brink of FID within the next six months?

Also, in dollar terms, how large would the entire Pegaga project EPCIC cost? Will they break it down to multiple fabricators? According to Upstream again, only MMHE and Sapura were invited to bid...again, is this even a contest?

Is it still safe to pursue a career in the direction of EPCIC management? I see 2012-2014 had so many projects, this past two years nothing basically, except for Bokor and a few smaller ones. Will EPCIC jobs come back in the near future, or are they gone for good?

For the Pegaga EPCIC tender between Sapura and MMHE, is it fair to assume that MMHE has it in the bag, or will Sapura be a legitimate challenge for them? Just talking about "merit" basis here, assuming Petronas doesn't exert pressure to support MMHE (or to support Sapura, since they already awarded Bokor to MMHE).

Thoughts on this guys?

Well, since the got called for the tender, would that not mean they have the required yard space?

Either way, assuming they DO have the yard space needed, between MMHE and SE which is more likely to win a tender of Pegaga's scope?

Is this considered a major project? http://www.theedgemarkets.com/article/petr...E2%80%93-report

Also, curious...how many upcoming/pending CPPs are we due to have in coming years, i.e. those in advance stages of planning or confirmed. Off the top of my head, there's Bokor (confirmed) and Pegaga (almost confirm). Anything else? This is a far cry away from 2012-2014 when there were so many planned and in the construction stage.

KS refers to Kuang South or Kasawari or something else?

Might I ask what CPP is this in reference to (Sapura Energy)?

Also, how far out are we from Mubadala's Pegaga becoming a reality? If they start hiring project managers in Sep-Oct 2017 (they advertised in August 2017)...how far away would the actual project award be in general? 6 months? 12 months? Would appreciate some clarity on this.

Well seriously guys, how does MMHE compare to regional players such as Keppel/Sembcorp/Hyundai/Samsung? Is MMHE really world class standard, or is it solely being kept alive due to its Petronas connections? Simply put, is it a "good"/"world class" fabricator, or just a so-so fabricator?

This is what prompted me to ask this question.

So what about all those so-called "glorious" projects of theirs...the Gumusat-Kakap FPS, Malikai TLP etc? Has even Petronas themselves lost patience with MMHE?

I really want to know from industry experts where they stand relative to the Spore/Korea/China yards.

This post has been edited by contestchris: Sep 13 2017, 06:58 PM

Can someone please explain how come Sapura is in the lead position? What could be the particular reasons? This is likely to be the largest O&G contract to be awarded in 2-3 years.

Sapura leads race for Pegaga turnkey award



Sapura Energy’s engineering and construction division is in pole position to land a significant turnkey contract for work on Mubadala Petroleum’s Pegaga gas development off Sarawak, east Malaysia.

Pegaga is one of the few current Malaysian offshore oil and gas developments but is one of the largest.

The main prize is the engineering, procurement, construction, installation and commissioning of a large central processing platform, with a 12,500-tonne topsides, 7000-tonne jacket and 3200 tonnes of piles.

The platform will feature a 12-slot drilling deck, a 50-person living quarters, and has been designed to produce between 400 million and 600 million cubic feet per day of gas.

It will be located in 110 metres of water in Block SK320 off Sarawak, and the floatover method of installation is understood to be favoured. Only two companies were invited to bid for the contract — Sapura Energy and Malaysia Marine & Heavy Engineering.

They are the leading exponents of big platform fabrication in Malaysia.

Bids were submitted some months ago, and sources said Sapura — with the support of WorleyParsons — is well positioned for the contract.

Both companies are desperate for a major new contract given their depleted order books and lack of ongoing work in their yards.

Sapura is insulated somewhat by its other divisions — its oil and gas production segment, its transportation and installation subsidiary and its drilling segment.

However, the company's recent market forecast was sombre, saying it remained “cautious on the outlook of recovery in the industry's capital spending”.

Activity levels would remain subdued in the near term and competition would remain intense. Sapura recently agreed with Subsea 7 to discontinue the SapuraAcergy joint venture, which resulted in Sapura becoming the sole owner of the Sapura 3000, a self-propelled dynamically-positioned heavy lift derrick and pipelay combination vessel.

This was viewed positively by Malaysian security analysts, as the vessel would enhance Sapura’s competitiveness in the engineering and construction business.

The vessel has worked in numerous countries, and also carried out landmark workscopes at Malaysia's first two deep-water projects — Kikeh and Gumusut-Kakap.

Abu Dhabi-headquartered Mubadala last September awarded Aker Solutions’ Malaysian subsidiary the front-end engineering and design contract for Pegaga.

Mubadala’s intention is to use the Pegaga field as the central hub for a series of discoveries in Block SK320.

The operator said Pegaga “is among the largest discoveries of recent years in Malaysia”.

Another aspect of the project is a 28-inch, 130-kilometre subsea gas pipeline to a new riser platform at a third-party field, said sources.

Mubadala was appointed the operator of Block SK320 in 2010 when the permit already contained the M5 discovery.

A successful appraisal well was drilled on M5 in 2012, followed in 2013-2014 by three substantial gas discoveries — Pegaga, Sirih and Sintok.

Mubadala is planning to drill two commitment wells in Block SK320 starting in December this year. It is understood the wells will be drilled using the jack-up Ensco 115 ( formerly the Atwood Orca) as part of a four-month extension with rig owner Ensco that Mubadala recently agreed.

Mubadala holds a 55% operating interest in SK320 with Petronas Carigali on 25% and Anglo-Dutch supermajor Shell holding 20%.

http://www.upstreamonline.com/hardcopy/138...a-turnkey-award

I also got an offer from a certain reputable company in local O&G industry. Hint: Petronas-linked.

The thing is, I come from banking/financial services side and this company is offering 12 months contract.

I have always been skeptical of contracts. Is this a normal practice in O&G industry? Is it usually convertible after 12 months, or is it perpetually on contract basis? What are certain drawbacks of contract positions? Is it something I should be worried about?

I'm just curious, O&G especially on fabricator side business still slow? I looked at an opportunity at MMHE at the start of the year, but I think they decided to not hire anyone for that position.

So what are the next big EPCIC projects to look forward to? Anything interesting? Bokor first steel cut in Q3 2018, then there is Pegaga awarded to Sapura. Anything else to look forward to? Petronas seems quiet here, I remember in 2012-2015 so many projects!

Guys I just want to understand, for a company like MMHE, what's their deal actually? I always thought MMHE was a superior fabricator compared to Sapura...no? I mean going back to over 5 years ago, MMHE got some pretty high tech fabrication awards. So why does it feel like MMHE is no longer getting any major contracts (last being Bokor at RM1bil last year April), while Sapura able to bag Pegaga and some other smaller works, and is also tendering for lots of international projects as well like in India, Saudi etc?

Is it a management issue? Why does being under the Petronas umbrella (by way of being MISC's subsidiary), not seem to benefit them?

Now I hear they are tendering for LTA with Aramco in Saudi...got hope? And Kasawari tenders are out...any hopes there either?

This post has been edited by contestchris: Jun 24 2018, 01:39 PM

Hmm is it odd that Sapura getting most of the large fabrication jobs over the past year or so? MMHE can not compete already? Failure due to leadership or other things?

Kasawari indeed looks interesting, but the outcome only known early next year.

What’s K5 again? Need CPP for this also?

Interesting. Another thing I know both Sapura and MMHE are pursuing is LTA status with Aramco and thereafter aim for some of the fab work from them. But I’m not sure if our local contractor have it in them to put in competitive international bids.

Is Petronas going on massive investment spree? Apparently they're aiming to award both Kasawari and K5 next year. Also will this mean Petronas shifting away from downstream?

I assume if its a CPP Sapura will get Lumut to build it? But people I know say Lumut is running at almost full swing..can they in that case someone else (such as MMHE or Korea/Singapore yards) to fabricate the CPP?

No other platforms. MMHE are such jokers. Got big and advanced yards but little usage. West Yard utilization at ~35% and East Yard utilization at 0% (yes ZERO percent). I wonder what is their issue actually.

The other day I was looking at jobs and MMHE is now recruiting for "windfarm fabrication". I mean seriously? Is this a sign of desperation? Are they even equipped with the facilities/expertise to fabricate windfarms? Is the skills/knowledge from offshore oil and gas platforms transferable to windfarm fabrication?

Can search for this job on Glassdoor. Got my head scratching.

Guys I was looking into EPCIC for CPPs and I came across Petronas' outlook for 2018-2020. They say in their low case scenario, got 1/2/1 CPPs for 2018/19/20. And in high case scenario, it is 1/3/1. In addition they also have a MOPU sanctioned for next year.

The above refers to first steel cut dates.

So I assume for 2018 it is Bokor CPP, and one of the 2019 ones are Pegaga CPP. The MOPU should be for K5.

What then could the other one or two CPPs be for 2019, and what's the CPP for 2020? The 2019 confirmed CPP is a very light/small CPP, while the 2020 confirmed CPP is a super huge CPP. Is Kasawari the one that will required a super huge CPP? If indeed that matches the Kasawari specs, then what is the "small" CPP confirmed for 2019? What could the "mystery" new medium sized CPP be as well?

Appreciate for insights from you sifus here!

You guys may refer here (pg 39): http://www.petronas.com.my/investor-relati...202018-2020.pdf

This post has been edited by contestchris: Aug 12 2018, 09:51 PM