You are here

Coastal Group awarded contract for jack-up gas compression unit

11th February 2014

Thaumas Marine Ltd (TM) acquires a charter contract with Pemex for a self-elevated jack-up unit with gas compression capabilities

Thaumas Marine granted contract from Pemex for self-elevated jack-up unit

Thaumas Marine Ltd (TM), a subsidiary of Coastal Contracts Bhd, announced that it has acquired a charter contract, worth about USD 372m, with Pemex for a self-elevated jack-up unit with gas compression capabilities.

The construction work will start immediately and is expected to be completed in the first half of 2015. The charter contract will start in the second half of 2015 for a period of eight years with extension of up to twelve years.  

The Jack-up will be able to control sour gas, thus injecting into the reservoir the high content of associated gas to oil, which assists in maintaining reservoir pressure and maximize the exploitation of hydrocarbons.

The sour gas compression plant will be a distinct operation that will use a capacity of 200 Millions of cubic feet per day (mmcfd). The Jack-up will be a necessary element for Pemex’s plans to increase their natural gas production and help stock the local market in Mexico.

Mr Ng Chin Heng, the executive chairman of Coastal said, “It was a terrific thrill for us to kick-off 2014 with the winning of such a sizeable long term charter contract from the upstream segment in Gulf of Mexico. This long term contract will lay a solid foundation for the Group’s exploration of new profit driver and provide the Group with the greater mid to long term earnings visibility; meantime strongly enhance Coastal Group’s competitive edge in the offshore market.”

He added that Costal believes “the Jack-up will be a key component to Pemex’s strategy for Enhanced Oil Recovery (“EOR”), especially for diligent reservoir management. We are optimistic with the prospect of this market given that offshore production solutions will create significant benefits to oil company by virtue of its key strategic advantages: cost effective, fast track delivery and re-locatable.”

 

Got a news tip? Email news@oilandgastechnology.net