Petronas to award $104 mln contract to Global Industries


    KUALA LUMPUR, Jan 11 (Reuters) – Malaysia’s state oil firm Petronas [PETR.UL] will award U.S. firm Global Industries (GLBL.O) a 350 million ringgit ($104 million) contract in the Southeast Asian country, a newspaper reported on Monday.

    The job is one of five contracts awarded by Petronas.

    Business Times, citing industry sources, said the contract involved laying oil and gas pipelines in between platforms across Malaysia and was expected to be awarded to Global Industries’ unit Global Offshore Malaysia this month.

    When contacted by Reuters, a spokesman from Petronas declined immediate comment on the report.

    Malaysia’s oil and gas service provider Kencana Petroleum Bhd (KENP.KL) is also expected to take a portion of the contract as it will take a 45 percent stake in Global Offshore Malaysia.

    “Kenacana will buy 45 percent of the company. They are ironing out the details with Global Offshore to strike a deal soon,” Business Time said, citing industry sources. Last month, SapuraCrest Petroleum Bhd (SCRS.KL) said its wholly-owned subsidary TL Offshore won three jobs from Petronas worth 1.5 billion Malaysian ringgit. [ID:nWNAS7882]

    The contract was also awarded by 11 companies that have production sharing contracts with Petronas in Malaysia. The job involves transporting and installing offshore oil and gas facilities and structures for 2010 to 2012.

    Some of these production sharing companies include Royal Dutch Shell (RDSa.L), Murphy Oil (MUR.N) and Exxon Mobil (XOM.N).

    The fifth job, which Petronas will award within the next two to three weeks, would likely go to unlisted Target Resources Sdn Bhd, Business Times said. ($1 = 3.375 Malaysian Ringgit) (Reporting by Niluksi Koswanage; Editing by Anshuman Daga)


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