SINGAPORE (Apr 8): Federal International (2000), the service provider and procurement specialist in the oil and gas industry, has won a US$6 million ($8.1 million) contract with Malaysia-based Xtreme Subsea Solutions and its subsidiary, Xtreme Solutions (Labuan) Incorporated.
Xtreme Subsea is based in Malaysia and registered with a licence from Malaysian state-owned Petronas to provide subsea solutions to operators.
Federal is supporting Xtreme Subsea as its procurement specialist for plugging and abandonment of three subsea oil wells at the Dai Hung field in Block 05-1A in offshore Vietnam.
The DH field spans 260 kilometres wide with water depths up to 110 metres. The DH field uses a Floating Production Unit which is connected to 12 subsea wells and the crude oil is offloaded to a Floating, Storage and Offloading Vessel (FSO).
The procurement service agreement will run for a period of six months starting from this month, with a potential additional variation order value of US$2 million.
Shares in Federal last traded at 21 cents on Apr 3.
