McDermott, THEE Confirm Several JV Deals (Malaysia)

Affiliates of McDermott International, Inc. and of TH Heavy Engineering Berhad (“THHE”) today confirmed the formalization of several Joint Ventures. The joint ventures were formally approved by THHE shareholders at their annual general meeting on 3rd June 2013.

“This is a milestone occasion for both companies” said Scott Cummins, Senior Vice President and General Manager, McDermott in Asia Pacific. “We have worked together on previous international bids as prime contractor and subcontractor, but with the new joint ventures we are both better able to commit and combine resources to enhance our joint Malaysian business. “

“THHE is motivated, entrepreneurial and keen to make major contributions to Malaysia’s offshore oil and gas industry,” continued Cummins. “Now the joint ventures are complete, THHE can also more fully access the experienced personnel, technical expertise, proven systems and world-class assets that McDermott contributes to the joint ventures; we look forward to further contributing to Malaysia’s aspiration of becoming the number one hub for oil and gas in the Asia Pacific region.”

The McDermott-THHE joint ventures will specifically focus on meeting the increasing needs of energy clients in Malaysia and is expected to bolster Malaysia’s engineering, procurement, construction, installation and commissioning (“EPIC”) capabilities to support the country’s projected extensive oil and gas growth.

The combination of THHE’s experience, assets and knowledge of the domestic Malaysian fabrication market, and the knowledge and experience that McDermott brings with regards to large scale EPIC projects and offshore installation is a win-win solution for Malaysia.

“As a significant offshore oil and gas fabricator in Malaysia, we have ambitious plans to grow our scale, capacity and turnover,” said Nor Badli Mohamad Alias, Managing Director and Chief Executive Officer of THHE. “To achieve that we realized we needed to expand into more complex oil and gas projects and markets requiring detailed engineering, extensive procurement and sometimes challenging offshore installation. McDermott has the technology and in-depth experience across these areas and also has similar aspirations for business expansion in Malaysia. It makes perfect sense for our two companies to partner and invest, in order to add a new locally based competitive offering to the Malaysian oil and gas market.”

Moving forward, the two companies will co-invest and hire local engineers this year to support engineering and turnkey EPCI bids and projects from its offices in Kuala Lumpur.

As the business expands, it is anticipated that both THHE and McDermott may seek a larger fabrication presence in Malaysia, and will make that a priority. As the companies pursue a larger footprint, they plan to improve the existing THHE fabrication yard at Pulau Indah, so it can undertake more work, in a safer and more efficient manner, while delivering a high quality product for customers.

The THHE McDermott JV will also own the McDermott Derrick Barge 30, a proven combination barge that is well suited for the Malaysian market.

Press Release, October 08, 2013

 

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