Federal International unit clinches US$155m project

AN associate of Federal International (2000) has received a "letter of intent to award" (LOI) for a US$155 million project.

The project - awarded by PTTEP International to PT Gunanusa Utama Fabricators (PTG) - is for the engineering, procurement, construction and installation of two offshore wellhead platforms, associated pipelines and tie-ins for the Zawtika Development Project Phase 1C.

It is expected to take 19 months to complete.

Under the LOI, PTTEPI has the option to award additional platforms to PTG on or before July 31, 2017, also valued at US$155 million.

The Federal group - which has a 20.66 per cent interest in PTG - has signed a procurement agreement with PTG to provide procurement and other ancillary support services to PTG for the project.

The project increases the group's current order book to about S$90 million.

It is not expected to have a material impact on the group's earnings per share or net tangible assets per share for the current financial year ending Dec 31, 2016.