Saturday June 30, 2012
New jobs for Brooke Dockyard
By JACK WONG
KUCHING: State-owned Brooke Dockyard & Engineering Works Corp has clinched two contracts worth RM102mil for the fabrication of an offshore jacket and construction of a 45m-long landing craft.
Sarawak Infrastructure Development and Communications Minister Datuk Sri Michael Manyin said the RM90mil offshore jacket contract was awarded by Murphy Oil while the RM12mil landing craft contract came from Marine Department.
He said the offshore jacket contract was part of a package worth RM500mil that included the fabrication of three offshore platforms.
“Hopefully, Brooke Dockyard will secure the entire RM500mil contract to be delivered over two years,” he said after opening Brooke Dockyard's new Sejingkat yard office building near here yesterday.
Manyin is the minister in charge of Brooke Dockyard, which just turned 100 years old.
Brooke Dockyard board member and technical advisor Zuraimi Sabki said it had just completed a RM160mil offshore module for Murphy, which is ready to be delivered and installed in Merapuh, offshore Bintulu.
Founded by the third White Rajah Sir Charles Vyner Brooke in 1912 to repair his fleet of boats, Zuraimi said Brooke Dockyard was one of the seven fabricators for the oil and gas (O&G) industry licensed by Petrolium Nasional Bhd.
Zuraimi said Brooke Dockyard had completed 15 offshore modules, 10 substructures and four offshore living quarters. Its clients included Petronas Carigali, Shell, Talisman and Exxon Mobil Exploration and Production Ltd, in addition to Murphy Oil.
It has also built navigational boats, multi-mission vessels, ferries for marine engineering works and steel-arch bridges.
Asked if Brooke Dockyard is to be privatised to enable it to expand and undertake bigger jobs, Manyin said: “We have not gone to that level.”
Over the years, there have been media reports singling out Brooke Dockyard as a potential takeover target as several parties have shown their interests.
Manyin said the Sarawak government had not received any formal proposal on Brooke Dockyard's privatisation.
Brooke Dockyard chairman Datuk Abang Abdul Karim Tun Openg said the marine engineering entity was looking at various options, including renting the fabrication yard of other companies, to expand its capacity.
“We are exploring our own yard to optimise its utilisation,” he added.
Last November, Brooke Dockyard signed a memorandum of understanding with KKB Engineering Bhd for possible joint collaboration to undertake jacket and other structural steel fabrication activities for offshore O&G industry and marine sector.
The two parties may enter into joint venture or other forms of collaboration on businesses to be identified. It is understood that the framework for the proposed strategic alliance had been drawn up.
KKB, whose core business is steel fabrication and manufacturing of steel pipes, had said that the tie-up might include the company leasing its waterfront land in Muara Tebas to Brooke Dockyard for its fabrication work for the O&G industry, with the exclusive rights given to KKB to carry out such works.
Abang Karim said Brooke Dockyard had been building up its capabilities as a reliable fabricator of offshore modules comprising drilling platforms, gas compression/production modules, water injection platforms and living quarters.
“Brooke Dockyard also has the capabilities to undertake turnkey projects for offshore development, fast-track projects, offshore host tie-in and hook-up and commissioning works, subsea fabrication, skid packages and onshore petro-chemical plants.
“It maintains its traditional business as a shipbuilder for high-speed and modern boats, ship-repair total lifecycle service provider and mid-span bridge fabricator,” he added.
Abang Karim said Brooke Dockyard had been structured to face the changing industry.
He said that with its niche capabilities in shallow water sized modules as living quarters and with an integrated in-house engineering team, it aimed to become a project developer for offshore marginal oil fields in Malaysia.