1. INTRODUCTION
The Board of Directors of Ranhill (the “Board”) is pleased to announce that by a Letter of Award dated 11 November 2022 from Malaysia Marine and Heavy Engineering Sdn Bhd (Registration No. 197301001012 (14558-P)) ("MMHE"), a wholly owned subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad to Perunding Ranhill Worley Sdn Bhd (Registration No. 198501009895 (142346-P)) ("PRW"), PRW was awarded a contract to perform Detailed Engineering Design for Kasawari Carbon Capture & Storage ("CCS") Project (the “Project”).
The award is as a result of winning submission by MMHE and PRW for the Front End Engineering Design (“FEED”) Design competition in August 2022. Ranhill had on 25 July 2022 announced on the award of the FEED Design for the Kasawari CCS Project by MMHE to PRW for the Project.
PRW is principally involved in the provision of engineering and design services of oil and gas facilities. Through a Service Agreement dated 12 July 2002 between PRW and Ranhill Worley Sdn Bhd (“Ranhill Worley”), as amended by a supplemental agreement dated 7 August 2003 and addendum no. 1 dated 10 March 2020, the parties agreed for the exclusive appointment by PRW of Ranhill Worley to perform services in respect of all projects awarded to PRW by its client in Malaysia which include but not limited to the provision of design and engineering technical services and know-how. Ranhill Worley, a subsidiary of Ranhill, also holds a 49.0% equity interest in PRW.
The Letter of Award which was received by PRW on 11 November 2022 is for a contract value of approximately Ringgit Malaysia: Fifty Million only (RM50.0 million).The company subsequently obtained the approval to release the announcement regarding the award from PETRONAS Carigali Sdn Bhd ("PETRONAS") and MMHE on 30 November 2022.
Tan Sri Hamdan Mohamed is a director and substantial shareholder in PRW. Tan Sri Hamdan Mohamad is also the Chairman and Chief Executive of Ranhill and a substantial shareholder of Ranhill.
The provision of engineering services by Ranhill Worley to PRW for the Project is a recurrent related party transaction (“RRPT”) which is in the ordinary course of business and are on terms not more favourable to Tan Sri Hamdan Mohamad, the related party concerned than those generally available to the public.
Ranhill had obtained the renewal of its shareholders’ mandate for the above RRPT at its eighth (8th) Annual General Meeting held on 2 June 2022. Details of the above RRPT are contained in Ranhill’s circular to shareholders dated 29 April 2022.
2. INFORMATION ON THE PROJECT
Kasawari CCS is the world’s largest offshore CCS project, capturing over three (3) million tons per annum of carbon dioxide (“CO2”). The new CCS platform will be located next to the Kasawari Central Processing Facility and linked via bridge. The CO2 will be transported by pipeline 138-km and injected into a depleted offshore gas reservoir.
Ranhill Worley’s scope includes the CO2 technology specification, evaluation and selection, along with design and engineering development for the platform, jacket, bridge, and pipeline. The team’s focus is on development of a well thought-out design solution that meets safety, operability and maintainability requirements while driving for reduced total installed Cost (TIC). The design will be enhanced through use of a digital driven systems and tools including use of Advanced Work Packaging to provide optimal benefit to MMHE and PETRONAS.
Duration of work is about 12 months and to be completed by Q4 of 2023.
3. FINANCIAL EFFECTS OF THE PROJECT
The Project is expected to contribute positively to the revenue and earnings of Ranhill for the financial year ending 31 December 2023.
4. RISK FACTORS
Risk for the Project work includes typical risks associated with performance of engineering services which are the normal course of Ranhill Worley business, such risks will be adequately addressed and mitigated by Ranhill Worley through its existing standard operating procedures and processes.
Ranhill Worley having been involved in this Energy, Chemical and Resource sector in partnership with Worley Limited over the past 25 years, will utilise its capabilities and experience in ensuring that all risks will be properly identified, assessed, addressed and mitigated.
5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS
Save for the above disclosure on Tan Sri Hamdan Mohamad, none of the interested Directors/interested Major Shareholders of the Group and/or Person connected with them, who has/have any direct or indirect interest, in the Project.
6. STATEMENT BY DIRECTORS
This award of Detailed Engineering Design of Offshore Carbon Capture for Kasawari, the world’s largest offshore carbon capture, is a testimony of clients’ trust on Ranhill Worley capability of providing solutions to the offshore field decarbonization and consistence quality of delivery. It further reinforces Ranhill Worley’s position as a leading provider of engineering and design services of oil and gas facilities in delivering sustainable tomorrow.
It is anticipated that even with the most aggressive projections of renewable energy transition there will still be need for hydrocarbons to be part of the energy mix. Therefore, moving forward, CCS will be a key part of global transition to net zero carbon emissions. Ranhill Worley is committed to working together with our customers to navigate their energy transition process to decarbonise the extraction of hydrocarbons.
This is another of our recent project wins with strong emphasis on sustainable hydrocarbons extraction and further reinforces Ranhill Worley’s position as a leading provider of engineering and design services of oil and gas facilities in delivering sustainable tomorrow.
The Board having taken into consideration all aspects of the Project and is of the opinion that the Project is in the best interest of Ranhill Group.
This announcement is dated 1 December 2022.
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发表于 5-12-2022 07:08 AM
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