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THHE boosts yard capacity, making moves into FPSO market

Malaysia's third largest oil and gas (O&G) facilities fabricator TH Heavy Engineering (THHE) is upgrading its yard to boost load-up capacity by four times to 8,000 tonnes by the third quarter of this year, local reports said.

General manager for marine Zainol Abiddin Johari was quoted as saying that the upgrade would push annual capacity above 20,000 tonnes, depending on Petronas evaluations.

He added that THHE is also involved in the manufacturing of hook up commissioning (HUC) and offshore cranes, which cost MYR5m ($1.5m) on average. The first of these self-branded cranes will be launched in June and the group can produce six a year.

Zainol added that THHE is also making moves into the Floating Production Storage and Offloading (FPSO) segment, where it is bidding for its maiden contract from an international O&G player. The contract value is at “a reasonable charter rate”, and it is close to sealing the deal, likely in the first half of the year.

“Our venture into FPSO is very important as it will allow us to have a more sustainable and persistent cash flow due to the long-term contract tenure of around 10 years,” he said. “Right now, we are focusing on this particular FPSO, but moving forward, we plan to own more FPSO units as we see this segment as a potential revenue driver for the group."
Source: Seatrade Global