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Petronas removes TH Heavy as upstream contractor

Malaysian contractor unable to bid on new offshore work at state-run oil company's upstream projects

Malaysian contractor TH Heavy Engineering said its fabrication division has been removed from the list of qualified turnkey contractors for upstream oil and gas projects by national oil company Petronas.

TH Heavy said it received a letter from Petronas on 9 October that said its removal from the list of licensed contractors was due to "non-performance" in relation to a procurement, construction and commissioning contract for the KNPG-B topside phase two, part of the Kinabalu non-associated gas project.

THHE Fabricators is now unable to bid for and be awarded any new offshore work involving engineering, procurement, construction, installation and commission works.

TH Heavy said poor market conditions mean the licence removal "will not have any material effect on the company".

Its fabrication division is still able to bid for other non-upstream scopes under the Petronas licence.