MMHE eyes partnership with local shipyards

Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), a wholly-owned unit of MISC Bhd, is seeking to collaborate with other shipyards in the country in the construction of deepwater facilities for the oil and gas industry. MMHE is making initial contacts with other local shipyards to see whether it can work together on future projects. A spokesman for the company declined to identify the shipyards, but said that any collaboration will be in deepwater projects in line with the company’s target to become the region’s centre of excellence for deepwater support services and maritime repairs.

Recent discoveries of deep-sea wells have pushed up demand for offshore facilities such as production platforms, semi-submersible rigs and drilling rigs. Malaysia alone is reportedly planning to develop about 10 deepwater fields in the next several years.

Against this backdrop, MMHE is also planning the expansion of its shipyard in Pasir Gudang, Johor. Already, the 123ha shipyard is working at full capacity. While MMHE is not ruling out acquiring other shipyards or adding additional land to the facility, the immediate expansion is more towards upgrading its deep-water and marine repair facilities and realigning of processes.

MMHE has an order book of RM2 billion, which would occupy the company until mid- 2008. MMHE’s offshore facilities construction business currently contributes 50% to its total revenue, while its marine repair and marine conversion works contribute 20% and 30% respectively.