Ranhill announces that by a Letter of Award from Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), a wholly-owned subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad to Perunding Ranhill Worley Sdn Bhd (PRW) was awarded a contract for Detailed Design Engineering services including Follow On Engineering for engineering, procurement and construction services of fixed offshore platform for the Rosmari-Marjoram gas project; Solar Powered Offshore Platform, for Sarawak Shell Berhad.
PRW is principally involved in the provision of engineering and design services of oil and gas facilities. Through a Service Agreement dated 12 July 2002 between PRW and Ranhill Worley Sdn Bhd (Ranhill Worley), as amended by a supplemental agreement dated 7 August 2003 and addendum no. 1 dated 10 March 2020, the parties agreed for the exclusive appointment by PRW of Ranhill Worley to perform services in respect of all projects awarded to PRW by its client in Malaysia which include but not limited to the provision of design and engineering technical services and know-how. Ranhill Worley, a subsidiary of Ranhill, also holds a 49.0% equity interest in PRW.
The Letter of Award which was received by PRW is for a contract value of approximately Ringgit Malaysia: Fifteen Million Only (RM15 million). The contract and the scope of works under the contract for the Project will be undertaken by Ranhill Worley. The Company subsequently obtained the approval to release the announcement regarding the award from MMHE.
Tan Sri Hamdan Mohamed is a director and substantial shareholder in PRW and is also the Chairman and Chief Executive of Ranhill and a substantial shareholder of Ranhill.
The provision of engineering services by Ranhill Worley to PRW for the Project is a recurrent related party transaction which is in the ordinary course of business and are on terms not more favourable to Tan Sri Hamdan Mohamad, the related party concerned than those generally available to the public.
Ranhill obtained the renewal of its shareholders’ mandate for the above RRPT at its eighth (8th) Annual General Meeting held on 2 June 2022. Details of the above RRPT are contained in Ranhill’s circular to shareholders dated 29 April 2022.
This unmanned platform will be primarily powered by renewable energy where it will utilize power from solar panels. With a design life of 20 years, it will cater for up to 800 million standard cubic feet of gas per day with a start-up targeted in 2026 supplying natural gas to the PETRONAS LNG Complex in Bintulu, Sarawak.
The duration of work is approximately 6 months and is estimated to be completed by Q1 of 2023.
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