Malaysian national upstream company Petronas Carigali has awarded compatriot Muhibbah Engineering a minor engineering, procurement and construction (EPC) contract for the wellhead platforms on its Sepat integrated redevelopment project, offshore Kuala Terengganu.

The Sepat integrated redevelopment project includes a newbuild floating production, storage and offloading vessel with the frontrunner Singapore-based contractor OceanStar Elite well placed to secure the contract according to industry sources.

Upstream earlier reported that the redevelopment includes two new wellhead platforms — Sepat-B and Sepat-C, as well as a subsea pipeline network.

The Sepat field has been producing for more than 10 years and consists of the existing Sepat-A wellhead platform and a floating storage and offloading vessel.

According to Muhibbah Engineering, the latest contract awarded by Petronas is valued at approximately 700 million to 850 million ringgit (US$172 million to US$208 million).

Muhibbah added that the contract is scheduled to commence this month and expected to be completed by the first quarter of 2029.

The contract “is expected to contribute positively to the earnings and net assets” of the group, Muhibbah said.

Upstream has reached out to Petronas and Muhibbah Engineering for more details.

Muhibbah Engineering has an established track record of undertaking EPC work for Petronas, including a engineering, procurement, construction, installation and commissioning contract for the Gansar gas condensate discovery in 2022.