KUALA LUMPUR: T7 Global Bhd, via subsidiary Tanjung Offshore Services Sdn Bhd, expects its Bayan Mobile Offshore Production Unit (Mopu) – TSeven Elise – to contribute a 50% increase to its annual revenue for the project duration of 10 years starting from the fourth quarter of 2022.
T7 Global group CEO Tan Kay Zhuin said currently its annual revenue is RM200 million to RM300 million and it will take four to five years to hit the RM500 million target annual revenue.
“Besides leasing, Tanjung Offshore Services will also provide operation and maintenance services of the MOPU which will contribute to the company’s top line,” he told a press conference at the naming ceremony of the Bayan Mopu today.
The CEO said the TSeven Elise Mopu is more sizeable in terms of contract value compared to its other projects. “Of course, the work and the technical aspect of things are more intense compared to our other contracts.”
Once installed at the Bayan field and upon first gas, TSeven Elise will be leased to Petronas Carigali Sdn Bhd for the Bayan Redevelopment Project Gas Phase 2 in Bayan-Field, Sarawak. The Bayan field development is at Sub-block 4Q-21 of Balingian Province, 80km northwest of Bintulu Malaysia LNG in a water depth of 30m.
Tan said that as the Bayan Mopu is at the end stage of construction, T7 Global will actively explore other opportunities in the region.
“So essentially, we are a Mopu solution player in this region. And this is our second Mopu. Moving forward, we are looking at Mopu solutions around Malaysia and Southeast Asia.
“We have set a target of getting one major contract every two years. This will be the KPI (key performance indicaor) for the group to hit,” Tan said, adding that the group has a few projects under negotiation in the pipeline.
“Back in 2021, it was tough. During the Covid period, we managed to secure a few jobs. The value is quite substantial. So for this year, when things are moving and prices recovered slightly, we are targeting at least the same amount of works that we achieved last year,” he said.
T7 Global group chairman Datuk Seri Dr Nik Norzrul Thani Nik Hassan Thani said the floating production unit is the first newbuild Mopu in Malaysia and the bidding was won via a competitive open tender.
On prospects, the chairman said on a macro level, the group is more optimistic as the economy and the industry are “picking up”.
“As prices go up and there are more activities in the sector, there's a lot more optimism and it's easier to close deals. That's the upshot.
“Energy is our main income stream, but we also have specialised construction and aerospace. Our concerns now is capability to do the orders on time. One is the materials and second, labour,” Nik Norzrul explained.
Currently, he said, the company has an order book of RM2.2 billion and a tender book of RM2.4 billion with the majority of the bids in the oil and gas sector followed by construction and aerospace.