Leighton Offshore

Engineering success with strategic growth

Australia’s Leighton Offshore, a subsidiary of the Leighton Group, Australia’s largest project development and contracting group  launched its new engineering business; a fully-owned subsidiary, DPS Leighton Engineering Sdn Bhd (LE). The company was launched in Malaysia recently to provide engineering, procurement management and construction (PMC) services to the oil and gas industry. Along with a new logo, the company has officially opened its new office at G Tower on Jalan Tun Razak in Kuala Lumpur.

The company said it developed its detailed engineering and PMC arm after acquiring the former oil & gas engineering consulting business, DPS Bristol (Malaysia) Sdn Bhd.

LE will also be providing technical, procurement, and management support to DPS Consultant Malaysia Sdn Bhd which provides oil and gas consultancy services in Malaysia. Leighton Offshore CEO Peter Cox said, “We are growing our oil & gas business internationally from our headquarters here in Malaysia, and strengthening our engineering and PMC capacity is a core element in our growth strategy.”

“We have made a business decision to focus our engineering and EPIC capability here in Kuala Lumpur, where there is a wealth of oil and gas experience and a competitive engineering talent base for oil and gas projects, and we are proud to be bringing world class projects, such as the Sealine Project to be performed here supporting investment and new jobs in Malaysia,” Cox said.

Sealine Project in Iraq

Cox has announced that Leighton Engineering was awarded its first contract valued at approximately USD 10 million, in October, to undertake the detailed engineering of two offshore platforms for the USD 518 million Sealine Project for Iraq’s South Oil Company. The project is being managed here in Kuala Lumpur by a dedicated project team from Leighton who will also assist in the procurement and follow on engineering for the two platforms. The Sealine project involves not only the design, construction and installation of the two offshore platforms but also a 75 kilometer 48” pipeline and a single point mooring system as well and follows on from the USD 800 million ICOEEP projects currently carried out by Leighton Offshore.

They have also signed an engineering, procurement, and construction contract with Iraq’s South Oil Company to install 120km of onshore and offshore pipelines and three single point mooring units in the Persian Gulf, offshore Iraq.

The scope of work to be carried out under the contract includes the installation and commissioning of two 48-inch diameter parallel pipelines, with 10km onshore and 40km offshore, which will link the new Fao onshore terminal to the new single point moorings (SPMs). In addition, Leighton will install and commission approximately 20-km of infield pipelines and the shore crossing for a third pipeline to be installed during future expansions. On a whole, the project comprises; installation of SPMs complete with subsea pipeline and manifolds, fabrication and installation of a subsea valve manifold and dredging works to achieve pipeline burial.

The fast-tracked project, with a duration of only 20 months from contract award to full commission, will provide enhanced export facilities from the Fao Terminal near Al Basrah, and form a major part of the South Oil Company’s strategic redevelopment programme for Iraq. The two platforms will commence fabrication in March 2012. It will be installed in two campaigns, one in 2012 and another in the 1st quarter of 2013. Leighton Offshore will use its vessels, Eclipse, Stealth and Mynx, to complete the project. The contract forms part of the Iraq Crude Oil Export Expansion Project which is developing offshore loading facilities to enable export capability of 4.5 MMbbl/d of oil.

Already employing some 200-300 engineers here in Malaysia and with offices in Tanzania and the UAE, Cox also went on to say that, the reason for setting up a base here in Kuala Lumpur is the expertise and experience offered by the work force here. According to him, Malaysia is a very mature oil and gas market which offers plenty of experienced talents to tap into and it is a very cost-effective engineering base as opposed to other places which are cheaper but offer a less experienced workforce.

LE is certified ISO 1800 company as well as ISO 9000 certified, in accordance to environmental standards. The company’s impressive HSE track records in terms of safety of its projects, is tracked through safety studies at the concept stage right through detailed engineering in accordance to all oil and gas company standards as required by ISO 1800 certification. LE considers safety in two areas; the technical integrity safety of the plant that they design as well as the methodology in terms of constructing the module.

“The Leighton Intention in Malaysia is to transform Malaysian engineers from a conservative point of view which has become a pure detailed designed engineer and transform them to a more constructive engineer who is able to perform interface, construction and pre-imposed commissioning. This will bring up the Malaysian engineers standards to a much higher, tier-1 acceptance."

  Dato’ Ismail Mohamed – Managing Director DPS Bristol (M) Sdn. Bhd.

Published in Oil & Gas Asia Business Review, December 2011