Malaysian firms secure $ 900 mm in Sudan oil jobs

The Melut Basin in Sudan has proven to be a rewarding business destination for several Malaysian companies, which have thus far secured some $ 900 mm ($ 1 = RM 3.80) worth of jobs there. The jobs are mostly related to engineering, fabrication and construction in the oil and gas sector, a senior industry source said.
Companies like Peremba Construction, MMC, Ranhill, Sapura and Nam Fatt Corp are some of the Malaysian companies that have secured contracts from the Sudan Government. These jobs were for the development of Block 3 and Block 7 of the Melut Basin Oil Development project.

Sources said many of the awards were the results of Petroliam Nasional’s (Petronas) promotional and lobbying works. Petronas is a partner in the PetroDar Operating Co (PetroDar), a co-venture entity comprising several national oil companies that holds the rights for exploration and development of the contract areas, Block 3 and Block 7 in south-east Sudan.
A source said more than 50 % of the contracts handed out by PetroDar had been to Malaysian companies, and these companies are being monitored to see whether they can deliver the jobs.

The fate of other Malaysian companies aspiring for jobs in the African country now rests with those already awarded contracts. If they fail to deliver, it is learnt that Petronas is unlikely to push for the employment of Malaysian companies anymore.
"The question now is the credibility of the Malaysian companies to deliver "If they fail, that would mean the end of the Malaysian companies in Sudan, and Petronas, being merely a contractor, may not be able to defend them," the source said.

PetroDar comprises China National Petroleum Co International (Nile) (41 % stake), Petronas Carigali Overseas (40 %), Sudapet (8 %), Gulf Oil Petroleum (6 %) and Al Thani (5 %). Apart from credibility, industry sources said these Malaysian companies should also not fail in their responsibility to assist other Malaysian companies.
"It should be noted that their success in securing contracts in Sudan is, in a way, attributed to the presence of Petronas," said the source, adding that since they were helped by Petronas to secure their contracts, they should then try to help other Malaysian companies. "I have heard that some of these firms prefer to outsource some of the jobs to foreign companies or do the job in other countries like India. Some of those jobs can be done in Malaysia. So, why should they do them elsewhere?" the source asked.

Peremba, Construction, a wholly-owned subsidiary of PECD, is the latest Malaysian company to secure an RM 881 mm contract to build marine export terminal facilities for the Melut Basin Oil Development project. The company will be the main engineering, procurement, construction and commissioning contractor. It leads a consortium comprising Intec Engineering (SEA) and Sudan Piles for Road and Bridges.
The fast-track project, which commences this month, is due for completion in December 2005. In July, a three-member consortium led by MMC won a $ 65.6 mm contract to build an oil pipeline in Melut Basin. The consortium, which includes China's Sinopec and Oman Construction Co, won the deal from PetroDar.

The project, due to be completed in May 2005, involves laying a 490 km export pipe-line for segment B1 of the Melut Basin Oil Development Project. During the same month, Nam Fatt Corp's subsidiary NF Energy, together with Italian firm Bentini, won a contract worth about RM 684 mm to build six pumping facilities at the Melut Basin.
The fixed lump sum contract was awarded by PetroDar, with the scope of work covering engineering design, procurement of equipment, mechanical and electrical works, equipment installation and commissioning works. The project is being undertaken on a fast-track basis, with 21 months allocated for its completion.

In June, a joint venture led by Ranhill's wholly-owned subsidiary, Ranhill International Inc (RII), won a $ 239.49 mm contract to build a major oil facility in the Melut Basin.
RII owns 55 % in the joint venture while the rest is held by Sudan-based Petroneeds Services International.