KKB unit bids for six projects worth RM370mil
KUCHING: KKB Engineering Bhd said its oil and gas (O&G) subsidiary OceanMight Sdn Bhd is bidding for six offshore structures’ fabrication projects in Sarawak worth a combined RM370mil.
Group executive director Kho Pok Tong expects the outcome of most of the bids to be known in second or third quarter of 2018.
He hopes that at least a third of the company’s bids will be successful.
“One of the key target over the next two years is to expand in the O&G sector,” Kho told StarBiz.
The tenders include both engineering, procurement and construction (EPC), as well as engineering, procurement, construction, installation and commissioning (EPCIC) projects.
Steel fabricator KKB raised its stake in OceanMight to 60.81% after it subscribed to five million new ordinary shares in the latter for RM5mil last month.
Before that, OceanMight was a 43%-owned associate of KKB.
Kho said making OceanMight a subsidiary was to strengthen KKB’s commitment in structural steel fabrication engineering for the O&G sector to complement its traditional steel fabrication core business as well as to enhance OceanMight’s financial strength.
He said in order to venture into onshore fabrication of offshore structures, KKB had so far invested more than RM115mil in phase-development of a new fabrication yard in Bako near here.
“In 2018, KKB’s capital expenditure is up to RM20mil to fund the expansion, if necessary, of the existing steel fabrication facilities to enhance the O&G projects,” he said, adding that financial strong KKB group is currently in a net cash position of about RM100mil.
According to Kho, OceanMight had completed and delivered four fabrication contracts for oil majors in the past three years after it was licensed by Petroliam Nasional Bhd to fabricate offshore facilities.
The company is currently carrying out some works under variation orders worth up to RM5mil for Repsol’s Bunga Pakma wellhead riser platform project.
Besides OceanMight, Kho said KKB had tendered for some RM140mil worth of projects under the group’s engineering and manufacturing businesses.