KUALA LUMPUR: Coastal Contracts Bhd says a consortium led by its joint-venture company Coastoil Dynamic SA de CV (CD) has secured a gas conditioning plant construction project in Mexico worth RM4.5 billion.
In a statement today, Coastal said CD had entered into a service agreement with Pemex Exploracion and Produccion, a subsidiary of Petroleos Mexicanos (Pemex) to undertake an onshore gas conditioning plant project.
The project is the EMC Papan Plant with a capacity of 300 million standard cubic feet per day (mmscfd) at Ixachi field, Tierra Blanca in Veracruz, Mexico.
Pemex is the Mexican state-owned petroleum company.
Coastal said the firm period for the contract was 3,902 days, including the construction period of 250 days and operations and maintenance period of 10 years.
Coastal executive chairman Ng Chin Heng said the company was optimistic towards pursuing more projects related to Pemex's production value chain amid a steady recovery of the industry.
"Winning this contract would mean that Pemex recognises our capability to provide quality service to Pemex."
He added that with the oil price hovering around US$70 per barrel and the underinvestment in the industry during the past few years, oil majors were expected to increase capital expenditure spending in year 2022.
"We believe that Coastal and our joint venture company will be able to capitalise these opportunities," he said.
Coastal said EMC Papan Plant, being part of Ixachi field, was considered to be a strategic project not only for Pemex but also for the Mexico government's aim to make gas to reach every Mexican in the country over the years to come.
"For Pemex, this project is attractive due to its proximity to existing gas collection, separation and measuring infrastructure as well as two major pipelines that will allow gas to flow to central, northern and eventually, south eastern of Mexico.
"Ixachi in comparison with Mexico's super-giant shallow-water Cantarell field is expected to be the most productive onshore field in Mexico once it hits its peak production," it added.