KUALA LUMPUR: Carimin Petroleum Bhd expects to resume expansion works on its fabrication yard in Kemaman, Terengganu after delaying the project for the last four years.
Carimin managing director Mokhtar Hashim said it had submitted the design of the fabrication yard to the local authority for approval last month.
“We have revisited that proposal (for the yard expansion). The design has been completed and submitted to the local council for approval last month.
“It will take at least two months to get the approval. Thus, I think we will be able to start construction by early next year and by third quarter next year, we can start using the fabrication yard,” Mokhtar told reporters after Carimin’s annual general meeting (AGM) here today.
He said the existing 2.5-acre fabrication yard was not enough to cover the requirement of its current work, forcing it to rent several yards for support.
“Our existing yard is not enough to cover the current workload of our ongoing projects. As such, we have revisited the requirements of these yards. We want to have more facilities. Now is the right time to invest. With this yard (expansion), we can have all the required facilities,” he added.
Carimin originally planned to use RM12 million from the RM66.8 million raised from its initial public offering in 2014 to upgrade its 78,448 sq ft fabrication yard in Telok Kalong, Kemaman.
The company expects to secure more engineering, procurement, construction, installation and commissioning (EPCIC) contracts despite the challenges faced by the oil and gas industry.
“Carimin is venturing into the subsea underwater segment through our acquisition of Subnautica Sdn. Bhd. Given the new projects in hand as well as the remaining three years of the five-year maintenance,construction and modification (MCM) contract, we are confident of maintaining the profitability of the company over the near to long-term period,” Mokhtar said.
To date, Carimin has amassed and completed projects valued more than RM1.0 billion since its inception.
Its clients include Petronas Carigali Sdn Bhd, Shell, Murphy Oil, Repsol, Exxon Mobil, New Field, Petrofac, HESS and Nippon Oil.
Carimin returned to profitability in the year ended June 30, 2019 (FY2019).
It posted a net profit of RM27.44 million on the back fo RM441.14 million revenue, amid an operating environment weighed down by oil price volatility.
Its turnaround was the result of increased offshore activities contributed by its MCM contract for Petronas Carigali.