Shell, Swiber Ink US$146m Deal
By Shareen Han

Bandar Seri Begawan - Brunei Shell Petroleum (BSP) has been awarded a contract worth US$146.6 million ($224 million) to Singapore's Swiber Holdings Limited to provide offshore engineering, procurement, construction, installation and commission (EPCIC) services in Brunei.

Swiber Holdings Limited, a niche service provider to the offshore oil and gas industry, said in a press release that the scope of the project includes in-house engineering services, project management as well as transportation and installation of offshore facilities, such as platforms, pipelines and sub-sea cables.

"These installations were scheduled for last year to next year and cover three major projects, namely Pipeline replacement, Mampak development and Seria North Flank Development," said the press statement.

Under the Letter of Intent by BSP, the pipeline replacement project would also include the fabrication of Rentis lines at Brunei Shell's yard at Telisai and towing and installing them on site.

Swiber said it expects to realise approximately US$70.5 million of the project this year, while the remaining US$76.1 million will be reached next year.

The project is expected to commence on the second quarter of the year.

"This is our first contract with Brunei Shell and marks an important milestone in our corporate history," said Raymond Goh, executive chairman and chief executive officer of Swiber.

"The project has established the start of our relationship with the global oil giant and we believe this will set the stage for more future dealings to come," he added.

He said that the record multimillion dollar deal for Swiber would cement their position as a major service provider to the offshore oil and gas industry in the Asia Pacific region.

Swiber, which was established in 1996, also operates a fleet of marine support vessels which are chartered to customers in offshore oil and gas exploration, development, production and post-production projects.

Swiber also has' three subsidiaries which are strategically located in Singapore, Malaysia and Indonesia. -- Courtesy of The Brunei Times

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