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Petronas awards 13 major contracts and 3 letter of awards for Pengerang project

01 September 2014 - The Sun Daily

PETALING JAYA: Petroliam Nasional Bhd (Petronas), has awarded 13 major contracts and three letter of awards (LOA) to local and international contractors under the Pengerang Integrated Complex (PIC) project in Johor.

"PIC is the impetus that will open doors for new technology and economic developments in Malaysia. The awarding of these specific contracts, part of PIC's critical milestones, is a clear signal that the PIC project is on track and that Petronas is firmly committed to PIC's successful delivery," Petronas COO, executive vice president and CEO of downstream business, Datuk Wan Zulkiflee Wan Ariffin said in a statement last Friday.

Total contracts awarded included five engineering, procurement, construction and commissioning (EPCC) contracts for the refinery and steam cracker (RC) component of the project.

The component involves the production of petroleum products and the feedstock for the downstream petrochemical plants that are to be developed within PIC.

Eight contracts for the common facilities and infrastructures projects were awarded to local companies. The projects include the next second phase of land clearing, construction of haulage and access roads, a material off-loading jetty, as well as the construction of common camp facilities.

These facilities lay the foundation for the construction and forward development of the project. At peak construction, an estimated 52,000 jobs are expected to be available.

The consortium of Technip-Fluor was awarded an LOA as engineering, procurement and construction management (EPCM) contractor to manage the utilities, interconnecting and offsite (UIO) facilities.

Technip-Fluor was earlier engaged as program management consultant to work with Petronas as an integrated project management team to orchestrate the overall project and site management of Rapid, whilst at the same time, provide project management services for specific EPCC packages within Refinery And Petrochemical Integrated Development (Rapid).

Developed within a 6,242-acre site in Pengerang, Johor, PIC forms part of the Johor State's Pengerang Integrated Petroleum Complex (PIPC), which is under Malaysia's Economic Transformation Programme (ETP). Rapid is estimated to cost US$16 billion while the associated facilities will involve an investment of about US$11 billion. PIC is poised for its refinery start-up by early 2019.
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