IEV Holdings Limited (the “Company”, and together with its subsidiaries, “IEV” or the “Group”) has successfully completed on schedule, the engineering, fabrication and load-out of a four-legged jacket and refurbished topside of a wellhead platform, which is part of a supply, delivery, installation and commissioning of a refurbished wellhead platform, pipeline, and host tie-ins to existing offshore production facilities project which commenced in December 2011. The six-slot wellhead platform has left the fabrication yard in New Orleans and is expected to arrive at the work site located off the shore of Sarawak, Malaysia by the end of August 2012. Platform and pipeline installation, hook-up, commissioning and host tie-in activities are scheduled to be completed by early October 2012, and first oil is expected in December 2012, barring unforeseen circumstances.
The RM262 million turnkey contract was awarded to the Group’s 30% associate, IEV (Malaysia) Sdn. Bhd. (“IEV Malaysia”) by Petronas Carigali Sdn. Bhd., an established oil and gas operator in Malaysia, on 13 December 2011 (the “Contract”). The project was executed under a strategic alliance partnership with a US-based engineering company, who is a specialist in the field of platform re-use in the Gulf of Mexico. In addition, industry-known local subcontractors and marine spreads were engaged for installation, hook-up and commissioning, and host tie-ins activities.
President and CEO, Mr Christopher Do, commented, “The completion of the fabrication and load-out of the reuse platform marks a very important milestone for the project. Traditionally, it could take 12 to 18 months to design and build a brand new four-legged jacket and topside. In this project, the design, refurbishment, fabrication and load-out of the platform was completed within six months from receipt of the letter of award. This proves that the concept of platform refurbishment or reuse is commercially viable as it can offer significant reduction in capital expenditure, fast-track a new field development and shorten the timeto- market of an oil and gas field by as much as 50%.”
“This was a challenging project for IEV but as with every first that we have attempted, we strive to successfully deliver the job on time,” he added. Barring any unforeseen circumstances, the Contract is expected to have a positive impact on the net tangible assets and earnings per share of the Group for the current financial year ending 31 December 2012.
None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, in the aforementioned Contract. The Directors are also not aware of any substantial shareholders that have any interest, direct or indirect, in the aforementioned Contract. As the progress of this turnkey project is subject to execution risks associated with the Group’s industry, shareholders and potential investors are advised to exercise caution when dealing the shares of the Company in relation to this announcement. The Company will make further announcements on any significant developments to the Contract as and when appropriate.