• 10 new domestic clients and 31 new international clients • 6 En Bloc Agreements • Total of 111 projects secured • Completed the repair and maintenance of 87 vessels including 11 LNGCs • EPCIC Kasawari Gas Development project - 75.5% progress rate • EPCIC Jerun Development project - 53.4% progress rate • Close to 1.5 million accumulated manhours • Completed a non-O&G and non-PETRONAS turnaround project for KL Kepong Oleomas Sdn. Bhd.’s oleochemical plant Secured EPC services contract for RosmariMarjoram gas project which will be powered by solar energy Secured EPCIC alliance contract for Malaysia’s first and the world’s largest offshore CCS project by volume of CO2 captured - Kasawari CCS Project SECURED MALAYSIA’S FIRST AND THE WORLD’S LARGEST CCS PROJECT During the year MHB secured the Kasawari CCS project from PCSB to undertake EPCIC alliance contract services. The EPCIC contract involves the construction of a 14,000 MT topside, a 15,000 MT eight-legged jacket of Kasawari CCS platform and a bridge linking to the Kasawari CPP. Upon completion, Kasawari CCS will be the world’s largest offshore CCS project by volume of CO2 captured at 3.3 million tonnes per annum of CO2, as well as Malaysia’s first CCS project. Located off the coast of Sarawak, offshore Malaysia, the project is slated to start up by the end of 2025. The award for the EPCIC alliance contract had followed on from MHB being awarded the FEED contract conducted in a FEED competition mode in early 2022. The FEED contract involves the Kasawari CCS facility capturing, transporting, and injecting high CO2 gas from the existing Kasawari Gas Development project’s CPP to the M1 Drilling Platform-A for storage in the reservoir. Our major contract win from our long-standing partner, PCSB, demonstrates their continued confidence in our capability to deliver according to their expectations. As this contract was won based on a FEED competition, it is also testament to our cost competitiveness in delivering integrated EPCIC solutions. We have continued to remain focused on delivering projects on our books. As at year end 2022, we had recorded 75.5% progress on the EPCIC Kasawari Gas Development project. The project comprises the construction of 47,000 MT of CPP, 8,600 MT of wellhead platform (WHP) and a flare structure, together with two bridges linking the CPP to the WHP and the flare structure. As well as that, it also includes the T&I of an 85 km pipeline linking the Kasawari CPP to the existing E11R-A platform. For the EPCIC Jerun Development project, we recorded progress of 53.4% by the end of 2022. Consisting of the construction of an approximately 15,000 MT topside, 10,000 MT jacket and 5,000 MT piles of CPP, it also includes the design engineering of a 30-inch carbon steel pipeline with a length equivalent to 80 kilometres distance from the CPP to the existing E11R-B platform to co-mingle with the existing trunkline to the PETRONAS Malaysia LNG Complex in Bintulu, Sarawak. The Marine segment recorded growth in the year as COVID-19 related challenges eased due to the pandemic transitioning to the endemic phase. By year end, the Marine business had secured 41 new clients comprising 10 new domestic clients and 31 new international clients from South Korea, Hong Kong, Netherlands, United States of America and United Kingdom among others. It also entered into six En Bloc Agreements as part of the total 111 projects secured. During the year, the Marine business completed the repair and maintenance of 87 vessels of various categories including 11 LNG carriers. Another major project secured in 2022 was the engineering, procurement and construction (EPC) services contract for the offshore platform of the Rosmari-Marjoram gas project, off the coast of Sarawak, offshore Malaysia from Sarawak Shell Berhad (SSB). The unmanned platform will be primarily powered by renewable energy generated from solar panels reflecting our commitment in providing cleaner energy solutions through the utilisation of renewable energy. Catering for up to 800 million standard cubic feet of gas per day for the supply of natural gas to the PETRONAS LNG Complex in Bintulu, Sarawak, the project has a design life of 20 years and is scheduled for start-up in 2026. The platform will comprise a topside, a four-legged jacket and piles. The project award signifies our strong and lasting partnership with SSB as well as the revitalisation of the O&G sector. MARINE & HEAVY ENGINEERING KEY DEVELOPMENTS COMMITTED TO PROJECT DELIVERY RECORDED GROWTH IN MARINE SEGMENT SECURED ROSMARI-MARJORAM GAS PROJECT PROVIDING CLEAN ENERGY SOLUTIONS We proceeded to diversify our business through the PTSM segment which continued to record steady performance. Turnaround projects we conducted during the year at the KLKepong Oleomas Sdn. Bhd.’s oleochemical plant and at Malaysian Refining Company Sdn. Bhd. for portable boiler services. Since 2018, the PTSM segment recorded accumulated manhours of close to 1.5 million manhours. Turnaround recorded 150,000 manhours for SWEC Code Accreditation while Daily Maintenance recorded 350,000 manhours. Towards generating greater productivity and profitability, in 2022 we increased the number of incoming vessels and asset utilisation. In addition, we completed a feasibility study on robotic blasting and plan to implement the system in 2023. This new closed system blasting which utilises semi-automation will dramatically improve our dry dock operations productivity, as well as deliver positive environmental impacts. Berthing facilities at Quay 1 have been increased to 2 berths, while upgrading works at Quay 7 and West Finger Pier are progressing as planned. Once completed, we would have increased our berthing facilities by 37.5% compared to FY2021, to 11 berths. SUSTAINED PERFORMANCE FROM THE PTSM SEGMENT ENHANCED OUR INTERNAL CAPABILITIES IMPROVED FACILITIES AND INCREASED AUTOMATION AT OUR YARDS MHB has continued to focus on enhancing our capabilities to improve our efficiency and increase our competitive edge. In 2022, we obtained certification from ASME for manufacturing U, U2 and R stamp coded pressure vessels. This certification will enable us to expand into new markets for the manufacturing and repair of pressure vessels. On top of that, we expanded our core FDDE/FEEV team. This has augmented our ability to deliver on our projects. Towards building our track record on managing full scope EPCIC projects, we continued to implement our T&I execution strategy for two key projects through long-term partnership with notable T&I contractors. • Obtained certification from ASME for manufacturing U, U2 and R stamp coded pressure vessels • Expanded our core FDDE/FEEV team • Implemented our T&I execution strategy by entering into 2 long-term partnerships • Increased number of incoming vessels and asset utilisation • Completed feasibility study on robotic blasting • Increased berthing facilities to 11 berths Business Review Business Review 127 126 MISC Berhad Integrated Annual Report 2022
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