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MMHE Develops as Deepwater Center

Maritime Activity Reports, Inc.

December 4, 2006

MALAYSIA Marine and Heavy Engineering Sdn Bhd’s (MMHE) recent commission to construct a semisubmersible vessel for the Gemusut deepwater facility will equip the company with the last capability it needs to be a full-fledged deepwater center, according to a report on www.btimes.com.my.

“Kikeh was the first, where we saw the spar technology transfer from Finland, so now we can build a spar anytime.” “So from Gemusut, once we do the semisub we will have semisub capabilities and once we have that we can do anything in deep water,” MMHE marketing and sales general manager Manoel Gomes told reporters, according to www.btimes.com.my. MMHE plans to cut steel in January 2007 and deliver it by June 2010.

“We have also started capability development on that, we are sending our guys to Houston, this is all part of our capability development, ” Gomes said.

MMHE has already approved an investment of RM160 million for the setup of a cryogenic workshop which studies the production of very low temperatures like below —160°C for use in LNG tankers. The company is also going to increase its bulkhead capacity to 40,000 tons from around 12,000 tons now. Management is currently awaiting approval from the board members to invest around RM200 million, even though it has been agreed on principle, to do the bulkhead and dredging work.

(Source: www.btimes.com.my)

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