Dyna-Mac clinches $60 million contract from Malaysian offshore firm

SINGAPORE - Oil & gas engineering services provider Dyna-Mac Holdings has won a $60 million contract from a Malaysian oilfield services provider, it said on Monday.

The mainboard-listed company will build six FPSO (floating production storage offloading) topside modules for Armada Cabaca, it said in a statement.

Armada Cabaca is an affiliate of Bumi Armada, an oilfield services provider based in Malaysia.

The six modules will be used in an oilfield off the shores of Angola in Africa, and are scheduled to be delivered in stages within the first three months of next year.

Topside modules contain equipment that carry out the major functions of a FPSO vessel, such as processing oil. Modules can be swapped out whenever necessary, to enable easier upgrading.

Dyna-Mac chief executive Desmond Lim said in the statement that the firm has successfully delivered 14 topside modules to Bumi Armada since 2011, with four more modules "in various stages of construction".

The contract win is expected to boost earnings for the financial year ending December 2015, Dyna-Mac said.

The company also said in early January that it had secured an $89 million contract from Oslo-listed BW Offshore to build topside modules bound for the North Sea.

Its shares fell half a cent to 35 cents before the contract award was announced.