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Federal and partner in Indonesia push

Singapore and Chinese partnership to target work on selected oil and gas projects 

Federal International of Singapore and China Merchants Industry Holdings have agreed to co-operate on securing work on Indonesian oil and gas projects.

Federal said a memorandum of understanding between the two will see them identify certain projects, and they are currently in talks with various Indonesian parties on a number of such projects.

Federal has a footprint in Indonesia through its partnership with Gunanusa Utama Fabricators and its part ownership of the floating, storage and offloading vessel Federal II, which is leased to CNOOC Limited at an Indonesian field.

Its new Chinese partner is a engineering, procurement, construction, installation and commissioning contractor, and its capabilities include the design and construction of offshore drilling vessels, specialised vessels, and vessel conversions, said Federal.

Federal's chief executive Koh Kian Kiang said: “The Group is pleased that CMIH has chosen it as its partner as CMIH seeks to expand its presence in Indonesia. Through the Group’s strong business ties and network in Indonesia, the Group and CMIH expect to secure oil and gas projects in the country."