Handal goes
into rig fabrication
Posted on 1 June 2012 - 05:36am
sunbiz@thesundaily.com
PETALING JAYA (June 1, 2012): Handal Resources Bhd has
expanded its business to include rig fabrication, with its first modular
workover rig to be fabricated and installed by the third quarter of 2012.
The integrated offshore crane service provider and fabricator
is in talks with oil and gas (O&G) players to deploy the modular rig, which
entails a capital expenditure of RM31.5 million, for marginal oil field
exploration, it said in a statement yesterday.
"Our upcoming modular workover rig will certainly expand
our capabilities beyond just fabricating offshore cranes and into the
fabrication of drilling rigs that are ideal for shallow- and medium-depth oil
field exploration and production," Handrill Sdn Bhd general manager Amir
Hasnizam Nordin said.
He said there are fewer than a handful of players in
Malaysia involved in the modular workover rig business, which complements
Handal's business as a niche player in the O&G support services sector. "With
our maiden rig, we are confident and well-prepared to ride on the strong growth
in the regional O&G sector moving forward," Amir added.
A modular workover rig is designed for quick rig-up/rig-down
and easy transportation between offshore platforms via the use of field supply
boats and platform cranes, and is suitable for marginal oil field exploration
and production (E&P). Amir believes that the fabrication of Handal's rig is
a timely initiative as the regional E&P industry is seeing intensified
activities and investment.
According to a Frost & Sullivan report, capex in
Southeast Asia's E&P sector is expected to hit US$38.7 billion this year as
investment is poured into new areas, deepwater blocks, mature field
rejuvenation and marginal field development. The report also forecast that
US$15 billion will be invested in Malaysia's offshore O&G activities, while
Indonesia is expected to see some US$21 billion injected into E&P projects.
Apart from Malaysia and Indonesia, Amir said Handal is also
exploring opportunities in Myanmar, the Philippines and Thailand for its new
rig business. "In fact, we are already in negotiations with prospective
clients for the rig, which will either be chartered to them or sold
outright," he said.
Currently, the group leases and maintains a fleet of 19
offshore pedestal cranes installed on rigs owned by multinational oil and gas
players.
