Offshore and marine (O& M) company Dyna-Mac Holdings and Kim Heng Marine & Oilfield, a wholly-owned subsidiary of shipyard operator Kim Heng, have signed a memorandum of understanding (MOU) to embark on larger floating production storage and offloading (FPSO) module fabrication projects.

 

The MOU has a term of two years and will automatically renew at the end of each term, giving Dyna-Mac the option to secure the use of Kim Heng&rsquo s yard facilities, and at agreed tariff rates for the entire term of the agreement.

 

According to the announcement dated Aug 15, this is a &ldquo win-win&rdquo partnership as it allows Dyna-Mac greater flexibility to address the spikes in FPSO vessel module fabrication demand. It will also allow the group to further entrench its strategic presence in the FPSO module fabrication business through inorganic growth of its production capacity.

 

Meanwhile, Kim Heng will access more complex and valuable projects tapping on Dyna-Mac&rsquo s know-how and client base in the FPSO module fabrication business.

 

The FPSO module fabrication sector refers to a specialised segment within the oil and gas industry that focuses on the construction, assembly, and integration of modules intended for use on FPSO vessels. FPSOs are offshore facilities that combine the functions of production, storage, and offloading of oil and gas.

 

&ldquo This mutually advantageous partnership between Dyna-Mac and Kim Heng aligns with the strategic vision of both companies, reflecting our shared commitment to providing enduring value for our respective shareholders,&rdquo says Lim Ah Cheng, executive chairman and CEO of Dyna-Mac.

 

Thomas Tan, executive chairman and chief executive officer of Kim Heng, adds: &ldquo This partnership empowers us to engage in more substantial, intricate, and high-value projects, marking a significant step forward in Kim Heng&rsquo s pursuit of sustainable long term revenue growth in the industry.&rdquo

Dyna-Mac Engineering Services, the wholly-owned subsidiary of Dyna-Mac Holdings NO4 0.00% , has signed a memorandum of understanding (MOU) with BW Offshore Holdings to jointly pursue carbon capture and storage (CCS) projects around the world.

 

These projects include the current gas and condensate projects in Australia&rsquo s Northern Territory.

 

BW Offshore Holdings is the Singapore-based, wholly-owned subsidiary of BW Offshore Limited, a diversified offshore energy company that&rsquo s listed on the Oslo Stock Exchange.

 

&ldquo CCS is a process in which carbon dioxide from upstream oil and gas extraction, mining, power plants and other industrial sources is separated, treated and transported to a long-term storage location, to prevent the gas from reaching the atmosphere and contributing to greenhouse gas emissions. CCS is widely regarded as an important technology to mitigate climate change,&rdquo says Dyna-Mac in its Aug 15 statement.

 

The collaboration, which will leverage on both parties&rsquo technical know-how and expertise in the oil and gas industry, will also meet the rapidly evolving demands of a greener energy sector.

 

Both parties intend to develop a catalogue of standardised engineering solutions based on proven designs to become a leading global CCS solutions provider, says Dyna-Mac.

 

This mutually beneficial collaboration also offers a unique solution and potentially contributes to Singapore&rsquo s push towards a net-zero carbon economy, it adds.

 

&ldquo We are thrilled to join forces with BW Offshore to pursue CCS projects on a worldwide basis, a move which fulfills our strategic goal of delivering long-term value and growth for our respective shareholders. The collaboration also aligns Dyna-Mac with Singapore&rsquo s green agenda, and allows us to work with stakeholders to incorporate sustainability initiatives into our business strategy and operations. With the understanding that sustainability is a journey, we continually strive to do more to reduce our carbon footprint and contribute to the growth of a greener energy sector,&rdquo says Lim Ah Cheng, executive chairman and CEO of Dyna-Mac.

 

&ldquo We look forward to working closely with Dyna-Mac to explore solutions and opportunities within CCS, which is considered one of the key technologies to transition into low carbon energy production solutions. The collaboration demonstrates our commitment to sustainability and highlights our shared vision to pioneer innovative solutions to enable a greener energy sector,&rdquo adds Marco Beenen, CEO of BW Offshore Limited.

 

Dyna-Mac also announced that it had entered into a two-year MOU with shipyard operator Kim Heng to work on larger floating production storage and offloading (FPSO) module fabrication projects on Aug 15.