Brooke Holding’s F6 VLAP project to inject RM152 mln into Sarawak’s economy, create 1,000 new jobs

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Wan Lizozman (second left) presenting a memento to Abang Johari after the contract signing ceremony between Brooke Holding and Sarawak Shell for the F6 VLAP project at Hikmah Exchange on Jan 17, 2024.

By Ashley Sim and Karen Bong

KUCHING, Jan 17: The RM421 million engineering, procurement and construction (EPC) of Fixed Offshore Structure Works for F6 VLAP Compression project undertaken by Brooke Holding Sdn Bhd for Sarawak Shell Berhad is expected to inject 40 per cent of the project cost, totalling RM152 million, into Sarawak’s economy.

Brooke Holding director Dato Sri Dr Wan Lizozman Wan Omar emphasised that this project, spanning 20 months from July 2023 to February 2025, not only ensures sustainability for its Oil and Gas Unit but also accommodates 185 dedicated employees of experienced oil and gas technical personnel, engineers and managers, comprising mainly local Sarawakians.

“The positive impact extends beyond our workforce, with a minimum of 40 per cent of the project cost, totalling RM152 million, expected to be injected into Sarawak’s economy, creating economic spinoff effect onm multiple industries and benefitting SMEs (small and medium enterprises).

“This substantial investment creates demand for highly skilled oil and gas workers, enabling the creation of approximately 1,000 new jobs for Sarawakians, especially for the Demak Laut employment cluster,” he said when speaking at the contract signing ceremony between Brooke Holding and Sarawak Shell for the project at Hikmah Exchange here today.

The signing ceremony was witnessed by Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg.

Highlighting the major components of the EPC F6 VLAP project, Wan Lizozman said it includes the heaviest single topside ever built by Brooke Holding for Shell, weighing 3,300 metric tonnes, in addition to the 1,900-metric-tonne substructure and Brownfield tie-in prefabrication and shiploose items.

He emphasised that the successful completion and commissioning of the project will lead to increased production and gas recovery for the late life of the F6 Field, located approximately 179 kilometers northwest of Bintulu in the Central Luconia area, offshore Sarawak.

“This project holds immense promise for the region. The gas production will be transported to the MLNG Satu Plant in Bintulu, ensuring strategic and efficient utilisation of resources,” he said.

Currently, Brooke Holding’s yards in Demak and Sejingkat are actively engaged in the SF30 project, scheduled for completion in mid-2024, and the F6-VLAP project, which is expected to conclude in the first quarter of 2025.

Expressing gratitude to Sarawak Shell for its trust and partnership since 1999, Wan Lizozman stated: “Looking ahead, Brooke Holding is committed to actively participating in future tenders from other Petroleum-Arrangement Contractors such as PETRONAS, PTTEP, and others, especially for Sarawak waters projects. These endeavors aim to keep our yards occupied until 2027 and beyond, ensuring sustained growth and prosperity for our organisation and our community.”

Minister of Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahmah Hamzah, Deputy Minister of Creative Industry and Performing Art Datuk Snowdan Lawan, Deputy Minister of Infrastructure Development Datuk Ir Aidel Lariwoo and Satok assemblyman Dato Ibrahim Baki and Shell Malaysia senior vice president of upstream Malaysia and country chair Siti Hurrairah Sulaiman were among those present. — DayakDaily

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