Engineering success with strategic growth
Australia’s Leighton Offshore, a
subsidiary of the Leighton Group, Australia’s largest project development and
contracting group launched its new
engineering business; a fully-owned subsidiary, DPS Leighton Engineering Sdn
Bhd (LE). The company was launched in Malaysia recently to provide engineering,
procurement management and construction (PMC) services to the oil and gas
industry. Along with a new logo, the company has officially opened its new
office at G Tower on Jalan Tun Razak in Kuala Lumpur.
The company said it developed its
detailed engineering and PMC arm after acquiring the former oil & gas
engineering consulting business, DPS Bristol (Malaysia) Sdn Bhd.
LE will also be providing technical,
procurement, and management support to DPS Consultant Malaysia Sdn Bhd which
provides oil and gas consultancy services in Malaysia. Leighton Offshore CEO
Peter Cox said, “We are growing our oil & gas business internationally from
our headquarters here in Malaysia, and strengthening our engineering and PMC
capacity is a core element in our growth strategy.”
“We have made a business decision
to focus our engineering and EPIC capability here in Kuala Lumpur, where there
is a wealth of oil and gas experience and a competitive engineering talent base
for oil and gas projects, and we are proud to be bringing world class projects,
such as the Sealine Project to be performed here supporting investment and new
jobs in Malaysia,” Cox said.
Cox has announced that Leighton
Engineering was awarded its first contract valued at approximately USD 10
million, in October, to undertake the detailed engineering of two offshore
platforms for the USD 518 million Sealine Project for Iraq’s South Oil Company.
The project is being managed here in Kuala Lumpur by a dedicated project team
from Leighton who will also assist in the procurement and follow on engineering
for the two platforms. The Sealine project involves not only the design,
construction and installation of the two offshore platforms but also a 75 kilometer
48” pipeline and a single point mooring system as well and follows on from the
USD 800 million ICOEEP projects currently carried out by Leighton Offshore.
They have also signed an
engineering, procurement, and construction contract with Iraq’s South Oil
Company to install 120km of onshore and offshore pipelines and three single
point mooring units in the Persian Gulf, offshore Iraq.
The scope of work to be carried
out under the contract includes the installation and commissioning of two
48-inch diameter parallel pipelines, with 10km onshore and 40km offshore, which
will link the new Fao onshore terminal to the new single point moorings (SPMs).
In addition, Leighton will install and commission approximately 20-km of
infield pipelines and the shore crossing for a third pipeline to be installed
during future expansions. On a whole, the project comprises; installation of
SPMs complete with subsea pipeline and manifolds, fabrication and installation
of a subsea valve manifold and dredging works to achieve pipeline burial.
The fast-tracked project, with a duration
of only 20 months from contract award to full commission, will provide enhanced
export facilities from the Fao Terminal near Al Basrah, and form a major part
of the South Oil Company’s strategic redevelopment programme for Iraq. The two
platforms will commence fabrication in March 2012. It will be installed in two
campaigns, one in 2012 and another in the 1st quarter of 2013.
Leighton Offshore will use its vessels, Eclipse,
Stealth and Mynx, to complete the
project. The contract forms part of the Iraq Crude Oil Export Expansion Project
which is developing offshore loading facilities to enable export capability of
4.5 MMbbl/d of oil.
Already employing some 200-300
engineers here in Malaysia and with offices in Tanzania and the UAE, Cox also
went on to say that, the reason for setting up a base here in Kuala Lumpur is
the expertise and experience offered by the work force here. According to him,
Malaysia is a very mature oil and gas market which offers plenty of experienced
talents to tap into and it is a very cost-effective engineering base as opposed
to other places which are cheaper but offer a less experienced workforce.
LE is certified ISO 1800 company
as well as ISO 9000 certified, in accordance to environmental standards. The
company’s impressive HSE track records in terms of safety of its projects, is
tracked through safety studies at the concept stage right through detailed
engineering in accordance to all oil and gas company standards as required by
ISO 1800 certification. LE considers safety in two areas; the technical
integrity safety of the plant that they design as well as the methodology in
terms of constructing the module.
“The Leighton Intention in Malaysia is to transform Malaysian engineers
from a conservative point of view which has become a pure detailed designed
engineer and transform them to a more constructive engineer who is able to
perform interface, construction and pre-imposed commissioning. This will bring
up the Malaysian engineers standards to a much higher, tier-1 acceptance.”
Dato’ Ismail
Mohamed – Managing Director DPS Bristol (M) Sdn Bhd.
Published in Oil & Gas Asia Business Review, December 2011
