LSE Bidding Billion Project From Petronas

LABUAN, 17 July: (Daily Mail) Labuan Shipyard Engineering Sdn Bhd (LSE), which owns the largest yard in the region is bidding billion of ringgit value of projects from Petronas, and expected to materialize second half of this year or at least early next year.

Chief executive officer Mohd Azman Nasir said LSE’s facilities coupled with more than 500 employees, be it in the engineering and technical fields should be able to help materialize the objective.

He said Petronas’ officials had carried out an assessment on the yard’s facilities, enabling it to see the possibilities to channel more projects particularly in the fabrication to LSE in the near future.

“This is a great challenge for us in LSE to meet the high standard of Petronas. But we are grateful to be able to meet the high expectation of the national petroleum company of Petronas,” he said at the launching of the completion of two single point mooring buoys (SPM) for the Sabah Oil & Gas Terminal Project (SOGT), Kimanis, Sabah, Tuesday.

The RM150 million project, was awarded to LSE by Alam Maritime (M) Sdn Bhd, a well known marine offshore service provider operating in the South East Asian region and middle-east.

“We are proud to have successfully completed the fabrication of SPM for SOGT project, the first ever to be completed by a Malaysian fabricator. It is an accomplishment for the organization and it places LSE as a major fabricator for the oil and gas industry in the country.

With the completion of the project, fabrication of the buoys will be commissioned to moor and load large crude carrier tankers for the transportation of crude oil out from the SOGT.

“The fabrication of two single point mooring buoys was a project that required a high degree of precision and accuracy which LSE was able to undertake and successfully complete,” he said.

With the latest development, LSE is poised to take on bigger and more meaningful roles in the growth of the oil and gas industry of the country. In this regard, we once again offer our yard, facilities and manpower to continuously support and serve the industry which is earmarked as a key contributor to Malaysia’s Economic Transformation Program,” he said.

Mohd Azman said LSE should be able to regain the glory of Sabah Shipyard which has a record of building Asia’s largest vessel with more than 3,000 employees.

LSE with its strategic location within the region, LSE should be able to “sail trouble water” with stiff competition around the region.

“The involvement of LSE in oil and gas augur well for the Labuan’s development and the country as a whole. Our achievement in completing various projects reflecting our ability, thus help propel complementing the national agenda of developing the oil and gas sector,” he said.

“When I first took over the management of LSE’s management the last two years with staff strength of 150 and increased to more than 500 now and expected to reach 1,500 in the next two years,” he added.

Azman also disclosed the revenue of LSE has surpassed the target of double digit of RM100 million and contributed by activities around Borneo’s island since the last year and this year.

“We have achieved our target of increasing of revenue through our involvement in oil and gas especially around Sabah. We have facilities with enough skilled manpower and biggest yard to offer to major clients,” Azman said.

Despite the shortage of skilled manpower currently faced by most of major industry players including Petronas, the major projects managed to be completed ahead of schedule.

Meanwhile, group chief executive officer Alam Maritim Resources Berhad told Bernama that LSE’s capabilities and facilities help realized the collaboration, coupled with its ability in meeting the health safety environment (HSE) aspect are fulfilled.

The fabrication is very complex and manageable by LSE. We want to ensure our employees are safe when comes to implementing jobs in this yard. We want to see when they come to work, they are intact and return home intact,” he said.

The completion of SPM showed the local fabricator of LSE was also able to complete the task as being done by major international companies like a Korean-based company of Samsung. We want to show to the world, Malaysian company is also able to complete the project with high standard quality accomplishment,” he said. 

Ir. Mohd Sulong Abdul Ghani, manager projects department development divisions of Petronas Carigali congratulated the achievement of LSE and Alam Maritim for being able to complete the project ahead of schedule.

“We congratulate them to complete the project. With the completion, we have achieved the overall target. The Petronas will be carrying out assessment on LSE’s yard every two years to ensure they are fulfilling the criteria and standard we have set,” he said.

Mohd Azman said the yard has chalked up a solid track record by constructing a broad spectrum of offshore structures and platforms for Petronas Carigali, Esso Production Malaysia Inc. (EPMI), Sabah Shell Petroleum Company. Limited. (SSPC), Sarawak Shell Berhad (SSB) and Hyundai Heavy Industries, Korea. These include modules, module frames, topsides/decks and facilities, living quarters, helidecks, flare-booms and bridges.

Among the yard’s major accomplishments were the Lawit-A Project (5 Modules and MSF totaling some 10,000 tonnes) for EPMI and the Kinabalu-A Project (KNDP-A Integrated Deck weighing 3,400 tonnes) for SSPC.

Labuan Shipyard Engineering has successfully completed the repairs and refurbishments of the following:

•           SBM’s for Single Buoy Mooring Inc, and Sarawak/Sabah Shell

•           Drill barge …for Foramer

•           Mobile Offshore Accomodation Module “Safe Marina” for Tulen Offshore

•           Jack-up rig “Key Singapore” for Sante Fe Braun

•           Drill barge “Grand Large” for Sea & Land Drilling Contractors.

LSE’s shipyard is one of the largest and most well-equipped in South-East Asia. It is capable of handling ships up to 16,000 deadweight tons with the capability of further expansion to take vessels of more than 20,000 tonnes deadweight.