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,OceanMight is currently in continuous talks with two foreign companies having operation bases in Malaysia to explore and identify any specific projects in the region that it could participate either as a contractor or sub-contractor, according to KKB group executive director William Kho Pok Tong.

KUCHING: KKB Engineering Bhd’s oil and gas (O&G) subsidiary OceanMight Sdn Bhd is eyeing fabrication jobs for offshore structures in the Asean region while actively bidding for more contracts in Malaysia.

OceanMight is currently in continuous talks with two foreign companies having operation bases in Malaysia to explore and identify any specific projects in the region that it could participate either as a contractor or sub-contractor, according to KKB group executive director William Kho Pok Tong.

He said one of the two companies is UK-based, and OceanMight has worked with both of them on other collaborations.

“We are looking at something concrete or at least one project to come up from the discussions by the second half-year of 2022,” Kho told StarBiz.

OceanMight’s first completed contract in the O&G industry outside Malaysia involved a minor fabrication and supply project in the Philippines.

Under Petronas Activity Outlook 2021-2023, Kho said OceanMight targets to bid up to seven out of the 10 to 14 projects in different categories in store under the “Design 1 Build Many” exercise.An Ocean might project

The seven projects that OceanMight is eyeing are worth some RM800mil. These projects are mainly for light weight structures not exceeding 1,000 tonnes each.

He expects OceanMight to also be invited to tender for fabrication jobs for medium weight offshore structures between 1,000 and 7,500 tonnes.

He said KKB group has invested some RM147mil in capex to develop and expand its new fabrication yard in Bako here in the past few years to gear itself to handle up to 30,000 tonnes per year.

“With the expanded capacity, we can bid for two or three projects at one time as we can carry out fabrication work for multiple projects simultaneously.”

Kho said since 2014, OceanMight has been awarded 11 fabrication contracts for offshore structures worth some RM915mil by oil majors.

Eight of the contracts have been completed and delivered to the clients while two of the three on-going projects are expected to be completed by end-2021 and the third in first half of 2022.

He said OceanMight is awaiting the outcome of its three tenders for fabrication jobs expected to be known in the first quarter of 2022. As at June 30, 2021, KKB group had a tender book of RM360mil, 60% of which was for O&G related projects and the remaining 40% for engineering and manufacturing projects that include water supply and steel water pipes.

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