LABUAN: The number of oil and gas (O&G) companies operating on the duty-free island of Labuan is booming despite the slump in crude oil prices.
This is evident from the 95 local and international companies registered with the Asian Supply Base, to date, of which offshore support companies make up the bulk and production sharing contractors, the remainder.
Declining oil prices were anticipated to result in downsizing of operations and production, but the sector continues to move forward.
Labuan Shipyard Engineering Sdn Bhd (LSE) which created history in the nation’s shipping industry when it built Kedah Cement III, the largest cement carrier ever built, has secured a number of projects based on its sterling performance.
It also scored a first for the record breaking time of only four-and-a-half months to complete and handover fast-track engineering, procurement, construction and commissioning projects.
In 2014, LSE successfully completed several projects including the Siakap North Petai onshore piping and structural fabrication and floating production, storage and offloading of offshore bulk materials for SapuraKencana Petroleum Bhd and underground piping works for Sabah Ammonia Urea project.
Director Datuk Abdul Rahim Mohd Zin said for this year, less O&G jobs were projected as a result of major players cutting down on capital investment and operation costs.
But, he expected revenue for its marine division to grow as it would continue to service and maintain idle and less active supporting barges, workboats and patrol support vessels.
“Labuan Shipyard Engineering (LSE) Sdn Bhd does not see any significant slowdown in its company’s performance as we have diversified our portfolio.
“We are optimistic of more projects coming our way for servicing and maintenance of government vessels,” he told Bernama.
He also said LSE had no plans to lay-off its more than 500 employees, but invest more on its people and upgrade facilities and equipment in anticipation of more O&G-related jobs coming its way once the industry recovered.
“Not only is LSE preparing its people for this but will soon contribute to the development of the much-needed skilled workforce on the island.
“We are working out training collaborations with local educational institutions that will kick-start this year as part of LSE’s corporate social responsibility,” he added. — Bernama