Thursday, May 31, 2012

HANDAL 1, nearing completion




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.

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