PETALING JAYA: Coastal Contracts Bhd’s joint venture company Coastoil Dynamic SA De CV (CD) has entered into a service agreement (SA) with a Mexican state-owned petroleum company Pemex Exploracion and Produccion’s subsidiary Petroleos Mexicanos (Pemex), to undertake an onshore gas-conditioning plant project.
The contract for the EMC Papan Plant with a capacity of 300 million standard cubic feet per day (mmscfd) at Ixachi field, Tierra Blanca, Veracruz, Mexico, is for 3,902 days, including the construction period of 250 days and the operations and maintenance period of 10 years for RM4.5 billion.
The scope of work includes engineering, procurement, construction, operation and maintenance for the gas-conditioning plant and its related infrastructure.
Upon completion of EMC Papan Plant, Coastoil Dynamic will have a combined gas-conditioning plant capacity of 480 mmscfd working at Ixachi Field.
EMC Papan Plant can provide gas sweetening, dehydration, dew point control and extraction of liquefied petroleum gas (LPG) services for Ixachi Field.
EMC Papan Plant is a strategic project not only for Pemex but also for the Mexico government that aims to make every Mexican gain access to gas in the country in the future.
Coastal Contracts group executive chairman Ng Chin Heng said the group would pursue more projects related to Pemex’s production value chain amid the steady recovery in the industry.
“With the oil price hovering around US$70 per barrel and the underinvestment in the industry during the past few years, oil majors are expected to increase capital expenditure spending in 2022. Coastal (Contracts) and our joint venture company would capitalise on these opportunities,“ he said in a filing to Bursa Malaysia.
Trading in Coastal Contracts shares was halted at 9.02am today and it shot up to as high as RM1.44 following resumption of trade an hour later. The stock ended the day’s trade at RM1.33 for a gain of 12 sen with a volume of 4.85 million shares.