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Malaysian marine, heavy engineering firm gains Saudi Aramco LTA spot

Malaysia Marine and Heavy Engineering Holdings Berhad latest addition to long-term agreement scheme

Malaysian energy contractor MHB has joined Saudi Aramco's LTA offshore programme [representational image].
Malaysian energy contractor MHB has joined Saudi Aramco's LTA offshore programme [representational image].

Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) is the latest contractor to join Saudi Aramco’s Long-Term Agreement (LTA) programme, a move that marks the energy contractor’s entry into the Saudi Arabian market.

MHB subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), signed the deal with the state-owned oil and gas giant, in consortium with London-based energy services firm TechnipFMC.

According to a statement, the agreement is valid for six years, with the option to extend for another six, and covers “engineering, procurement, fabrication, transportation, and installation of offshore facilities in support of [Aramco’s] Offshore Maintain Potential Program [MPP]”.

READ: Malaysia's Sapura Energy joins Saudi Aramco's LTA contractor scheme

The purpose of the MPP programme is to manage the maintenance, revamping, or expansion operations of all Aramco offshore facilities.

“With relations to the LTA, MMHE and its partner will be looking at certain scope to be performed in Saudi Arabia, supporting the ongoing Saudisation initiative,” MHB added in a statement.

Speaking on the deal, Mashitah Wan Abdullah Sani, MHB’s managing director and chief executive officer, said: "Our entry into Saudi Arabia marks a significant milestone for the group’s heavy engineering segment as we pursue growth in line with our strategy to expand our portfolio in the international market.

READ: Boskalis named contractor within Saudi Aramco's LTA programme

“Fully leveraging on the core strengths of MMHE and TechnipFMC, we believe that the collaboration is another solid step in our constant drive to deliver the best to our customers.”

The deal comes a month after a subsidiary of Malaysia’s Supura Energy joined the LTA programme. Under its new status, the contractor will participate in bids for engineering, procurement, construction, and installation (EPCI) opportunities by Aramco.

Dutch marine contractor Royal Boskalis Westminster also joined the scheme last month.

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Construction Week - Issue 750
Sep 30, 2019