Ramunia gets LOI from Shell

Malaysia: Ramunia confirmed it had been handed a letter of intent for two fabrication contracts by Shell

Ramunia has confirmed it has been awarded a letter of intent from a Malaysian subsidiary of Anglo-Dutch supermajor Shell for two fabrication contracts worth a combined 150 million ringgit ($49.4 million).

The Malaysian company said it had received a letter of intent from Sarawak Shell Berhad for the fabrication of the D12DR-A and LADR-A substructures and another for the fabrication of the topsides.

Ramunia confirmed the awards in response to a query from Bursa Malyasia on local media reports it had won a contract from Shell for fabrication works.

Shell is developing the the Laila field in Block SK 307 and the D12 marginal field in Block SK5, off Sarawak, in partnership with state-run oil company Petronas.

The D12 development involves a drilling riser platform that will transport gas and condensate through a flexible pipeline to the D35 complex, while Lalia’s proposed development is understood to include a tie-in to the producing Betty oil and gas field.

The developments are intended to increase supplies to the MLNG Dua and Tiga liquefied natural gas plants in Bintulu, Sarawak.

Ramunia said the letter of intent from Shell was dependent on fulfilling conditions which it said it was in the process of fulfilling, without providing further detail.

Last week the Business Times quoted an unnamed source as saying Ramunia would be awarded the project once it received a bank guarantee from financial institutions willing to back the company’s participation in the project.

Meanwhile The Edge newspaper quoted sources as saying the offer could be conditional upon Ramunia possessing its own fabrication yard.

According the paper Ramunia has offered to purchase the Pulau Inda integrated fabrication yard, which it is currently leasing, for 83.8 million ringgit.

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