(From third left) Gerawat, Lo, Abang Johari, Masing and others toss the Yee Sang to welcome the Lunar New Year which is just around the corner.
KUCHING: With 21 years of experience in the oil and gas (O&G) sector, Brooke Dockyard and Engineering Works Corporation (BDEWC) is confident that it can play an important role in realising Sarawak’s aspiration to participate actively in the O&G sector.
Its chairman Datuk Abang Abdul Karim Tun Abang Openg cited the successful completion of the E6 Project as a clear testimony of the company’s capabilities, especially in undertaking marginal field projects.
“On this, I hope the newly set-up Petros will take note. Being a seasoned player, we have been able to strengthen our versatility and capacity,” he said in his address at the Loadout Ceremony of E6 DP-A Substructure and Topsides operated by Sarawak Shell Berhad at BDEWC Sejingkat fabrication yard, Jalan Bako here yesterday.
The auspicious occasion was graced by Chief Minister Datuk Patinggi Abang Johari Tun Openg and witnessed by State Secretary Tan Sri Datuk Amar Morshidi Abdul Ghani, Deputy Chief Minister Tan Sri Datuk Amar Dr James Masing, who is also the Minister of Infrastructure Development and Transportation, and Shell Companies in Malaysia chairman Datuk Iain Lo.
“We have been acknowledged as an efficient and competitive player in the sector, having successfully delivered more than 30 offshore modules and substructures with total tonnage of 37,647 metric tonnes. This is our proven record,” he said.
“We have expanded our annual rated capacity from 8,500 metric tonnes to 25,000 metric tonnes for both Sejingkat and the new Demak fabrication yards,” he said.
With these capacities and capabilities, he expressed confidence that BDEWC would be able to undertake more projects from the government and private sector and compete with other major players not only in the O&G sector but also land-based and marine industry.
Its manpower strength, he added, consisted of 400 personnel, of whom 99 per cent were Sarawakians.
“For the past 21 years, Brooke has created employment for and trained the locals as well as provided livelihood to at least more than 1,000 families,” he added.
Abdul Karim said BDEWC fully supported the state’s government’s persistent efforts to optimise the benefits from O&G sector.
“It is most practical and logical to expect that Sarawak players be given the priority and opportunity to benefit from the development of these resources,” he said.
Meanwhile, Lo emphasised that the partnership between Brooke Dockyard and Shell, which has spanned across 30 years, provided Shell the confidence to entrust Brooke Dockyard with new mode of fabrication using its own Health, Safety and Environment management system in delivering work for Shell.
“I have to say that Brooke has exceeded our expectations. This is a key step change in simplifying our relationship with our contractors and reducing cost – and the E6 is one of the first projects within Shell globally to adopt this approach,” he said.
The E6 field, he said, was discovered in 1970, but being a small field, its economics were marginal and other fields were prioritised for development.
“Now five decades later, it is E6’s turn to shine. E6 is not only small but it is a challenging development. It has a thin oil rim of two km below seabed, which is a valuable prize but difficult to get.
“Together with Petronas Carigali, Shell came up with a development concept that requires us to position the horizontal sections of the oil wells in this thin oil rim – a feat that was not possible 50 years ago.
“We also made E6 a satellite, which means that it has minimal processing facilities. Instead oil is processed at D35 and gas is processed at E8 – both existing platforms – thereby radically reducing cost and shortening the development time,” he said.
Thus, Lo hopes that the valuable insights gained from the E6 development can help unlock similar opportunities previously considered marginal or uneconomic.
“Shell aspires to be the leading O&G company in the country and we are the leading O&G producer, and we continue to explore aggressively to maintain our strong position.
“Our downstream business is flourishing and we will be introducing Euro V diesel in Sarawak this year,” he added.
Yesterday’s ceremony celebrated the successful onshore completion of the E6 Field Development Project in 12 months for the fabrication of 1,450-tonne topside and 10 months for the 1,500-tonne jacket by Brooke Dockyard.
The event also recognised the technical capabilities and strong labour force who worked over 13 months, clocking 1.2 million injury-free man hours.
The E6 field development is part of the SK308 production sharing contract awarded by Petronas to Sarawak Shell Berhad and Petronas Carigali Sdn Bhd. E6 is an oil and gas field located 180km west of Miri in water depth of 70m or 228 ft.
Assistant Minister of Transportation Datuk Dr Jerip Susil, State Legislative Assembly Deputy Speaker Datuk Gerawat Gala, Demak Laut assemblyman Dr Hazland Hipni as well as officials and personnel from Petronas and Shell were among those present.