Handal bags contract from Malaysia LNG to provide pipeline isolation services

KUALA LUMPUR: Handal Energy Bhd’s 51 per cent-owned subsidiary, Borneo Seaoffshore Engineering Sdn Bhd (BSOE), has bagged a 14-month contract with an option to renew for one year from Malaysia LNG Sdn Bhd (MLNG) to provide pipeline isolation services and support.

In a statement today, Handal group managing director Sunildeep Dhaliwal said the company expects the contract to bring a positive impact on earnings for the financial year ending June 30, 2021 (FY21) and FY22.

“This contract perfectly aligns with our business turnaround plan, which includes diversification of our earnings base into high-value margin activities as well as bringing competitively-priced solutions to clients.

“We expect clearer earnings visibility given the rise in crude oil prices and subsequent work orders from the coming contract cycles,” he said.

Sunildeep said ever since the company acquired a majority stake in BSOE, it has successfully executed several pipeline isolation system installations.

He said these were executed with effective and reliable pressure monitoring environment ensuring that all replacement activities are completed with the highest safety measures and within the duration agreed.

Handal specialises in the manufacturing, maintenance, and servicing of offshore cranes.

The company is one of only two API 2C crane manufacturers in Malaysia as well as the leading provider of API 2C rental cranes in Southeast Asia.

It has also expanded into related services in the oil and gas (O&G) industry after acquiring a 51 per cent stake in BSOE in 2019 that leverages on new technologies and integrated solutions with a focus on pipeline maintenance, well intervention, workover, and abandonment as well as gas turbine maintenance, repair and overhaul.

MLNG, a subsidiary of Petroliam Nasional Bhd (Petronas), operates the Petronas LNG Complex in Bintulu, Sarawak, which is among the world’s largest LNG complexes operating on a single site.

With nine production trains, it brings a total combined production capacity of over 29 million tonnes per annum.

Source: ThEdgeMarkets