T7 Global expects Bayan Mopu to increase annual revenue by 50%
SEP. 08, 2022
Bayan Mopu on track to be delivered.
KUALA LUMPUR (Sept 8): Energy solutions provider T7 Global Bhd expects the Bayan Mobile Offshore Production Unit (Mopu) to increase its annual revenue by 50%, said its group chief executive officer Tan Kay Zhuin.
"We do about RM200 million to RM300 million in revenue a year. With the contribution of this Mopu, which will be added towards the end of this year, the amount [of revenue] will increase by about 50%," he said at a press conference, after the naming ceremony of the Bayan Mopu here on Thursday (Sept 8).
However, he did not elaborate on the figure.
Once the Mopu is installed in the Bayan field and the first gas comes out, it will be leased to Petronas Carigali Sdn Bhd for the Bayan Gas Redevelopment Project Phase 2 in Sarawak for 10 years until 2032.
The Bayan Mopu, which is in the final stages of construction, is T7 Global's second Mopu project. The company's first Mopu project took place in 2005, when it leased a converted unit to UK energy services company Petrofac Ltd for the Cendor oilfield development project, which ended in 2014.
“We expect the [Bayan] Mopu to start contributing to the company in the last quarter of the year.
“Besides the leasing of the Mopu, TOS (Tanjung Offshore Services Sdn Bhd) will also provide operation and maintenance services to the Mopu for the project, which will contribute to the company’s top line,” he said.
Currently, the size of T7 Global’s tender book is RM2.4 billion, the bulk of which is from the energy sector. The company's current order book stands at RM2.2 billion.
Describing the Mopu as "more sizeable in terms of contract value", T7 Global is targeting more Mopu projects in the future.
In addition, the company also intends to become the next major player in this segment of the oil and gas industry.
"This is an area that we want to focus on. I think we have the expertise, and the Bayan Mopu is by far the most challenging project we have done so far, as we did it during the lockdown due to the Covid-19 pandemic," said T7 Global chairman Datuk Seri Dr Nik Norzrul Thani Nik Hassan Thani.
"We do not want to be just a Mopu provider limited to Malaysia, but also a regional provider," he added.
T7 Global’s net profit for the financial year ended Dec 31, 2021 (FY21) grew to RM10.51 million, from RM7.91 million for FY20, as revenue rose to RM264.35 million from RM189.41 million.
The strong performance was driven by higher execution of works related to engineering, procurement, construction, installation and commissioning, as well as integrated well services and operations and maintenance for clients such as Petronas Carigali, Repsol Oil & Gas Malaysia, and Carigali Hess Operating Company.