(EnergyAsia, July 18, Friday) — Federal International (2000) Ltd, a Singapore-based engineering and procurement specialist supporting the energy and utility industries in Southeast Asia, said it has secured a ‘build, operate and own’ project through its business associate, PT Geolink Nusantara. The project calls for an oil pipeline installation in east and central Java, Indonesia.
The company said it will be involved in the project management and procurement of materials for the project, which entails the engineering, procurement, construction and installation of a six-inch by 40-km oil pipeline from Banyu Urip to Mudi and two oil storage tanks for customer PT Pertamina EP Cebu.
Project planning started in May and is due to be completed by next January. The project is expected to generate revenue of approximately US$14 million for the Federal group over a contractual period of 33 months.
Federal executive chairman and CEO K. K. Koh said: “We are delighted to have secured this project which is Federal’s first oil pipeline installation project on a ‘Build, Operate and Own’ basis. This project reflects our progress in scaling up the value chain, from trading and distribution of oilfield related products to project management and procurement of materials.”
The group’s participation in the project will be funded by internal resources and bank borrowings. The project is not expected to have any material impact on the net tangible assets or earnings per share of the company for the financial year ending December 31, 2008.
Listed on the mainboard of the SGX-ST in 2000, Federal has transformed its business model. Today, it is involved in research and development, design and manufacturing as well as trading of flowline control products and services and oil and gas-related equipment.