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After four years, THHE awarded Petronas licence

TheEdge Tue, Jan 14, 2020 08:21pm - 8 months ago

KUALA LUMPUR (Jan 14): TH Heavy Engineering Bhd (THHE) has received the green light from Petroliam Nasional Bhd to supply certain products and services to oil and gas companies in Malaysia, after a multi-year suspension due to non-performance in 2016.

In a filing today, THHE said its wholly-owned unit THHE Fabricators Sdn Bhd (TFSB) has been awarded the Petronas license for three categories: Topside piping and structural, offshore facilities — major fabrication, and tank farms.

However, the approved licence categories did not reinstate THHE as a main contractor of Petronas.

The duration of the licence is for a three-year period ending Dec 23, 2022.

“With the newly-approved licence, TFSB will now be eligible to be invited to bid for Petronas projects for the above-mentioned categories,” THHE said.

THHE was previously excluded from participating in tenders by Petronas Carigali Sdn Bhd for a two-year period beginning April 1, 2016, due to performance-related issues pertaining to the execution of a project.

On July 9, 2017, it received another letter from Petronas which excluded TFSB from participating in oil and gas projects as a main contractor, or to participate in any major fabrication works or engineering, procurement, construction, installation, or commissioning works.

Shares of THHE traded unchanged at 10 sen today, giving the offshore fabricator a market capitalisation of RM112.13 million.

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