Labuan shipyard

COMPANY PROFILE

2014

Labuan Shipyard

+60 87-451 888 | www.labuanship.com

Safety, quality and efficiency from LSE Editorial: Roland Douglas

Labuan Shipyard and Engineering is located in Victoria Harbour, Labuan, strategically close to one of the busiest shipping lanes in South China Sea. It has the capacity of 36,000 tonnes per annum of product throughout and it is capable of building and handling ships of up to 16,500 Dead Weight Tonnage (DWT) and offshore structures of up to 12,000 tonnes. Total World Energy finds out more about recent achievements that the company is understandably very proud of…

As we have found this month, and in our last few issues, Southeast Asia is becoming a major player in the global oil & gas industry. The Gulf of Thailand has many exploration and development projects underway, the South China Sea has a number of prospective opportunities and it’s the same for the Celebes Sea and

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Andaman Sea. Then there is the Indian Ocean, south of Malaysia and west from Australia, which will be home to Shell’s titanic Prelude FLNG facility.

Because of this on-going development in the region, a strong supply chain has grown in the oil & gas sector with countries including Singapore, Indonesia, Australia and

Malaysia all now home to big name players who are driving local innovation to new heights.

In Malaysia, one of the most prominent companies in the oil & gas industry is Labuan Shipyard and Engineering, a subsidiary of Radimax Group and a leading engineering and construction company with core businesses in oil & gas,

Labuan Shipyard engineering and fabrication, shipbuilding, ship repair, refitting, modernisation and maintenance of naval crafts.

The yard itself has been in existence since 1972 and has built up an extensive and proven track record in oil and gas engineering and fabrication, shipbuilding, ship repair and construction of power barges. Tank coating services has recently been introduced and is offered to ship owners for their new or existing ships.

Before gaining its current identity in September 2005, the business was known as Sabah Shipyard and was

“This expansion will transform LSE into a complete solutions provider in the shiprepair business, providing the highest quality of services in the most efficient manner�

always attractive to oil and gas companies because of its location. Labuan is strategically located within international and shipping and air routes between the Indian and Pacific Ocean.

Sea transport and import/ export of goods are well served

by Labuan Liberty Port, one of the best deepwater ports in the East Malaysian region. By air, Labuan is readily accessible to international destinations via Kuala Lumpur and Kota Kinabalu.

Regular ferry services are also available between Labuan and mainland Sabah, Sarawak and Brunei.

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PERFECTLY PLACED Labuan Shipyard and Engineering (LSE), because of this strategic location, is perfectly positioned to be the shipyard and engineering contractor of choice to the world’s oil companies that operate in the region and after LSE’s parent company announced recently that is was looking to expand its already impressive portfolio of services which includes

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shipbuilding, engineering and non-clinical hospital support services.

Group Chief Executive Officer Datuk Abdul Rahim Mohd Zin said: “LSE is well positioned to offer a compelling value proposition to the oil companies operating in Sabah and Sarawak due to its strategic location as well as proven technical capability to undertake the engineering

and fabrication of deep-water installations.

“We have the expertise and the capabilities to take on assignments on biomedical and facilities engineering maintenance services, healthcare waste management services, workshop and fleet maintenance services as well as cleansing services. We are looking at possibly expanding our services regionally, too,” he said.

Labuan Shipyard “We have identified new areas of investment and are constantly on the lookout for M&A (merger and acquisition) opportunities that has the potential to create greater value for our core businesses,” he added.

A STRONG HISTORY After being awarded its major fabrication license in 2011, LSE has gone on to complete prestigious projects for some of the world’s major oil and gas players.

After obtaining its license, the company participated in the submission of tenders for major fabrication services for Petronas Carigali and other Production Sharing Contractors (PSCs) worth RM2.2 billion.

LSE won the tender, based on competitive bidding, for the Engineering, Procurement, Construction and Commissioning (EPCC) of the Permas Production (PR-PA) Substructure and the Interim Production Facility (IPF) for Murphy Sarawak SK311 Development Project.

LSE had successfully completed the contract in record time, handing the project over within a remarkable four and half months from the date the contract was awarded.

As a further testament to its capabilities in oil and gas, LSE had also bagged a robust track record by constructing a wide range of offshore structures and platforms for Petronas Carigali, Esso Production Malaysia Inc. (EPMI), Sabah Shell Petroleum Co. Ltd. (SSPC), Sarawak Shell Berhad (SSB) and Hyundai Heavy Industries, Korea. These include modules, module frames, topsides/ decks and facilities, living quarters, helidecks, flare-booms and bridges.

Among its major achievements were the Lawit-A Project (five

Modules and Man Support Frames (MSF) totaling some 10,000 tonnes) for EPMI and the Kinabalu Drilling Platform A (KNDP-A) Integrated Deck weighing 3,400 tonnes for SSPC. LSE is both ISO 9001 and OHSAS 18001 qualified, and it expects to achieve the ISO 14001 qualifications before the end of the year, making it the only shipyard in Borneo and the second shipyard in Malaysia to be awarded with all three ISO certifications.

TANK COATING In May this year, LSE announced that it was ready to make a move

into a new sector – providing tank coating solutions for mediumsized vessels of up to 140 metres in length – as part of Radimax’s move to diversify the company’s portfolio.

Diversification into this sector will mean targeting vessels who sail along the East Malaysia route and also those operating between the Far East and the Middle East/ Europe. The advantage here will be vessel operators will not have to incur significant costs by changing their routes for coating services as is currently the popular practice.

“We are aiming for international

(EVERY EFFORT WILL SUCCESS IN REWARD)

YR Marine & Engineering is an industry leading company involved in blasting and painting work for ship repair and process platform fabrication at various yards in Malaysia. The company also as acts as a dehumidifier supplier and scaffolding, piping and insulation services provider.

NO.17-01 & 19-01 JALAN MASAI UTAMA 1, TAMAN MASAI UTAMA, 81750 MASAI, JOHOR DARUL TAKZIM. MALAYSIA.

TEL: 607-2512118 FAX: 607-2557799 EMAIL: yr.marine.engineering@gmail.com CONTACT PERSON: MD YUSOB BIN HASHIM

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market for this segment. As such, we are teaming up with an established Malaysian tank coating service provider, YR Marine & Engineering Sdn Bhd. With this partnership, we are able to provide all levels of tank coating solutions, from standard epoxy coatings to the more stringent zinc silicate coatings and sophisticated coatings such as Marine Line coating,” Datuk Rahim said.

LSE’s Chief Operating Officer, Azizul Hanafee Mohd Zain said: “Being the market leader in the industry, LSE possess a strong

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track record and has always been at the forefront in providing the latest and above par services.

This expansion will transform LSE into a complete solutions provider in the ship-repair business, providing the highest quality of services in the most efficient manner.

“With LSE’s ability to provide overall project management services as well as the integrated ship-repair works, and YR Marine’s expertise, this partnership will allow ship operators to have a convenient single source all-in-one service

provider in the East Malaysia region,” he added.

Tank coating is important business as the coating is used to protect the content of the cargo such as methanol, palm oil and petroleum-based products. Currently, tank coating is undertaken mainly in Singapore but this new venture for LSE will viable alternative that is competitively priced and geographically relevant.

SAFETY AT THE HEART In June, LSE was proud to announce that it had achieved

Labuan Shipyard a considerable milestone as far as safety is concerned. Azizul declared that the company had achieved more than 13 million Man Hours without Lost Time Injury (LTI) since 2009. Not many companies reach such a milestone and the COO attributed the success to the stringent Health, Safety and Environment standards at the yard.

“Safety is our number one priority and it is ingrained into our work culture. It is our overall safety mission to reduce total recordable case frequency (TRCF) by 10% every year. We are committed in ensuring that every employee, subcontractor and those involved with our projects are assured of a safe and healthy work environment,” he said.

“We do not compromise the welfare of our employees. It is our policy to conduct all business in compliance with the acts and legislations of federal and state health, safety, security and environment regulations such as OSHA 1994, EQA 74, FMA 67 and Petroleum Act 84 among others,” he added.

In another safety success, LSE announced in August that it had also achieved more than 1,000,000 Man-Hours without Lost Time Injury (LTI) with its ongoing construction of two Offshore Work/Accommodation Vessels (OWAV) for Sarku Marine Sdn Bhd. Azizul again paid tribute to the yards standards, saying that employees focus had led

on excellence and quality with this project until the vessels are delivered to the client.”

LSE has employed new thinking during the Sarku project, where the company has been employed to design and build two OWAVs equipped with Dynamic Positioning System Class 2 (DP2) and also fitted with Fire Fighting System Class 1 (FiFi 1) for external fire-fighting services, and has subsequently managed to increase its ship block building capability from a previous maximum of 70 tonnes to a new record of 180 tonnes.

“In order to fuel our growth, we are actively tapping into new business streams to prove our commitment as an innovative, capable and trustworthy service provider to our clients. We are already the largest and most well-equipped shipyard in North Borneo and we look forward to further expand our client base and strengthen our product portfolio in order to be the shipyard of choice as well as the market leader in the region for the range of products and services we offer,” Azizul concluded

to achievements including ISO certification. “Safety is paramount and is second nature for all of us here at LSE, which has led to us obtaining the ISO 9001 and ISO 18001 certifications,” he said.

“We strive to maintain our focus

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