DELIVERY WITH PASSION40 YEARS

MagazinE

PRODUCED BY

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A well-earnedcelebrationMalaYsia MaRinE anD HEavY EnginEERing HOlDings BERHaD (MHB) is PROUDlY CElEBRating tHE 40tH annivERsaRY Of its wHOllY-OwnED sUBsiDiaRY MalaYsia MaRinE anD HEavY EnginEERing sDn BHD (MMHE).

“Our existence has been a journey of significant growth and success. today, we are Malaysia’s and southeast asia’s largest offshore construction, conversion and marine repair facility with world class standards”

“we are marking major milestones for the marine and offshore industry, and we are charting history for Malaysia. this is the year we acknowledge the support of all our stakeholders including our clients, investors, partners, subcontractors, service providers, government authorities and local communities. from here, we seek to

further strengthen their faith in us and we invite them to stay the course and continue the journey with us.”

Dominique de Soras, MD/CEO of MHB

MMHE HAS coME A long wAy in early 1971, a survey for the location of MMHE (MMHE west) yard and feasibility study was undertaken. lumut, Perak and Pasir gudang, Johor were the shortlisted sites, but eventually the latter was selected for its strategic location.

40 years ago, MMHE (MMHE west) was the first company to be established in the industrial area of Pasir gudang. the 150.6-hectare yard was just a swamp and secondary jungle area.

today, MMHE is world-class, as a leading marine and heavy engineering services provider, offering a wide-spectrum of offshore construction, offshore conversion and marine repair services at its two yards (MMHE west yard and recently acquired yard called MMHE East) in Pasir gudang, Johor, Malaysia, which are strategically located near the bustling shipping lanes of south East asia.

A journey of growth and successMAY 1973MMHE was incorporated under the Companies act on 18 May 1973 under the name Malaysia shipyard and Engineering sdn Bhd (MsE).

MsE was a RM 100 million joint-venture established by the Malaysian government and private sectors both local and foreign to advance Malaysia’s maritime industrialisation programme. APRIL 2000

MsE entered into a joint-venture agreement with atB Caldera spa (now atB Riva Calzoni spa) for the manufacture and production of pressure vessels and tube heat exchangers.

18 NOVEMBER 1973MsE’s ground breaking ceremony by the late Dato’ Hussein Onn, then the Deputy Prime Minister of Malaysia.

Construction and development, undertaken by Kajima Corporation of Japan, started immediately and went on steadily after the ceremony. On 9 september 1976, completed ahead of schedule, the yard was open for operation.

27 NOVEMBER 1976Official opening of the Pasir gudang yard (MMHE west) by the late HE tun Hussein Onn, the then Prime Minister of Malaysia

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APRIL 2006MMHE-sHi lng sdn Bhd (Mslng) was established. MMHE holds 70% equity interest and samsung Heavy industries Co ltd holds 30% equity interest for the provision of repair services and dry docking of lng carriers.

JULY 2006MsE Holdings became a wholly-owned subsidiary of MisC following its acquisition of the entire equity interests held by iMC Enterprises incorporated and Kuok Brothers sdn Bhd in MsE Holdings.

MARCH 2007MHB ventured into turkmenistan to manage and operate Kiyanly Yard for Petronas Carigali (turkmenistan) sdn Bhd.

29 OCTOBER 2010MHB was listed on the Main Market of Bursa Malaysia securities Berhad, with an iPO of RM 2.03 billion.

AUGUST 2011MMHE entered into a definitive sale and purchase agreement with sime Darby Engineering sdn Bhd (sDE) for the proposed acquisition of sDE’s Pasir gudang fabrication yard to expand its capacity to cater to engineering, procurement, construction, installation, hook-up and commissioning (EPCiC) works for offshore oil and gas related structures.

APRIL 2005MsE was re-named as Malaysia Marine and Heavy Engineering sdn Bhd (MMHE).

JUNE 2010MMHE was taken under its holdings company Malaysia Marine and Heavy Engineering Holdings Berhad (MHB).

AUGUST 2010Establishment of MMHE-tPgM sdn. Bhd., an EPCiC joint venture company between Malaysia Marine and Heavy Engineering sdn. Bhd. (MMHE) with technip geoproduction (M) sdn. Bhd. (tPgM)

24 MARCH 2011MHB was awarded the industry Excellence award 2010 under Export Excellence award – services category.

1 APRIL 2012legal Day 1: sime Darby Yard (now called MMHE East) was officially handed over to MHB.

the acquisition has significantly increased MHB’s yard capacity from 69,700 Mt to 129,700 Mt, making MHB the largest fabricator in Malaysia today in terms of yard size and capacity. in conjunction with the acquisition, MHB’s yard in Jalan Pekeliling was renamed MMHE west, while the newly acquired yard is now known as MMHE East.

MARCH 2012MHB kicked off its transformation Programme.

with its acquisition of the sime Darby yard, the Company understands that, in order to achieve its greater goals, transforming its operations and capabilities is necessary.

Running over a course of three years, the Company’s transformation programme is focused on three areas; successful integration, operational excellence and high performing culture, to ensure that its organisation and workforce are able to take on challenges in today’s competitive landscape.

JULY 2011formation of a joint venture company known as technip MHB Hull Engineering sdn Bhd between MHB (50%) and technip geoproduction (M) sdn Bhd (50%) to build and develop hull engineering and engineering project management capacities.

MAY 201340th anniversary of MMHE

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Marine repairt

he Company’s marine repair business officially started on 17 september 1976 when it received the 122,484 dwt bulk carrier Japan acacia from Japan lines for drydocking and repair works.

since then MHB has grown from strength to strength, having delivered over 3,500 vessels including various types and sizes of tankers, gas carriers, container ships, bulk carriers, warships as well as offshore vessels such as Osvs, tender barges and rigs.

MHB has built upon its core capabilities in general vessel repairs to focus on more complex and higher value projects including refit and refurbishment of a wide range of vessels, with a focus on energy-related vessels such as UlCCs, vlCCs, petroleum tankers, chemical tankers, offshore oil rigs, gas carriers and other offshore support vessels.

MHB’s other services include ‘jumboisation’ works, which are complex engineering operations to increase the size of a vessel.

“ Our people are well-versed with this and our expertise in dealing with LNG vessels is second to none supported MHB’s MD/CEO Dominique de Soras.

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LNGC specialist

MHB has become a trusted partner of choice and one of the few global leaders in lngC repair works. in 2004 MHB started carrying out full-scale drydocking of lng carriers and made lng carrier repair works a major component of its core activities.

MHB’s established core capabilities in lngC repairs have enabled itself to take on and deliver more complex projects including lngC refurbishment and conversion.

MHB is proud to have completed two lngC refurbishment/upgrading projects and a lngC conversion to floating storage Unit (fsU), the first by a Malaysia based company and one of the few in the world.

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Offshore repair solutions MHB’s array of solutions for the offshore sector also includes repair, refurbishment, reactivation and conversion works for offshore vessels such as rigs/Mobile Offshore Units and tender barges. with over 20 projects under its belt, the Company aims to be a leading yard in this sector. some of its clientele are triumph Drilling, Crest tender Rigs, Marlin Offshore (s) Pte ltd, Pride international, Petrofac, the Offshore Drilling Co. and wilhelmsen. On april 2013, MHB acquired a new client MOPU Holdings singapore ltd through a double contract award for the refurbishment and conversion (from MODU to MOPU) of EP 6 and KBM 1.

Global success and presence through partners MHB’s 15 marine repair agents worldwide are its invaluable partners while they are amongst the industry’s most knowledgeable, reputable and dependable professionals. through close collaborations, MHB has been able to effectively reach and build long-lasting relationships with hundreds of clients across the globe.

MHB has strengthened its capabilities in lngC repairs through its synergistic alliances with gaz transport and technigaz (gtt) and samsung Heavy industries (sHi).

gtt has licensed MMHE to carry out membrane cargo containment system repair and the two companies are jointly engaged for repairs, maintenance and inspection works related to cargo tanks and invar welding.

from its incorporation in april 2006, Mslng, a joint venture between MMHE and a leading lngC shipbuilder sHi, has boosted MHB’s technical, marketing and management capabilities in lngC repairs and conversions. the Yard provides the facilities, in-house experts and skilled manpower while sHi, provides marketing and technical support, work process enhancements and supply chain logistics.

MMHE west yard is equipped with dedicated facilities to support the capabilities of its well-versed lngC project teams, including a 560 m2 cryogenic workshop, 3 global test control rooms, helium test equipment, acoustic emission test equipment, an automation lab and invar welding and cargo tank training facilities.

with an extensive track record of over 100 lng carriers of various sizes and types, MHB has catered for many leading lngC clients worldwide including MisC, Hyundai Merchant Marine, Oman shipping Management Company, Bw gas, Bg group, MOl, K-line, stX, tsakos, shell, Hoegh lng, , Humolco trans inc,and gotas larsen (now golar).

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Marine repair milestones17 SEPTEMBER 1976Marine Repair business officially commenced with the dry-docking of Japan acacia, a 122,484 dwt bulk carrier of Japan lines.

APRIL 1999Repair, life-extension and major upgrading works

on semi-submersible seahawk of atwood Oceanics

steel renewal (300 Mt) and various piping systems modification/upgrading

JULY 1999first lng carrier repair and drydocking – tenaga satu of MisC.

World-class facilities

MMHE West Yard - 150.6 hectares

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Docking/BErtHing

1. Shiplift System Capacity: 50,000 dwt size: 188.4m x 33.8m x 8m draft largest platform in the world

2. West Finger Pier size: 300m (l) x 25m (w) Capacity: 390,000 dwt (vlCC)

3. Landberth 1 length: 345m Capacity: 142 tonnes/m

4. Landberth 2 length: 345m Capacity: 125 tonnes/m

5. Dry Dock 1 Capacity: 450,000 dwt size: 385m x 80m x 14m (One of the largest in the region)

6. Dry Dock 2 Capacity: 140,000 dwt size: 270m x 46m x 12.5m

7. Quays (6) length: 232m to 396m

Supporting FAcilitiES Cranage 16 yard level luffing cranes, 15 to 80 tonnes 15 tonnes @ 100m max, 80 tonnes @ 50m max 4 crawler cranes, 150 to 400 tonnes

Workshops 36 workshops 102,450 m2 with comprehensive range of machinery

LNG Tanker Repair Facilities Cryogenic workshop (560m2) invar welding centre Mobile cargo tanks monitoring instruments console (gtCR)

“Delivered over 3,500 vessels since 1976

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MARCH 2008 semi-submersible rig, naga satu, (12,525 dwt) from a new client Japan Drilling Co ltd

Drydocking and repair works – major steelwork (370Mt) and helideck replacement (196 Mt)

AUGUST 2011 first Repair, life Extension and Conversion (RlEC) of lngC – MisC’s lng tenaga satu was converted to a floating storage Unit (fsU), renamed as fsU 1.

OCT 2000first jumboisation project – t-6 Robray tender Drill Barge of varia Perdana sdn Bhd

MARCH 2006Major refurbishment/upgrading works on semi-submersible seahawk of atwood Oceanics

total structural work around 1000 Mt

2 NOVEMBER 2011Repair works on self-propelled semi-submersible mobile launch platform lP Odyssey from wilhelmsen ship Management as. the major scope of work included overhauling bow thrusters and azimuth thrusters and cropping and renewal of kort nozzles.

30 APRIL 2013Refurbishment and conversion (MODU to MOPU) of EP 6 and KBM 1 from MOPU Holdings (singapore).

FEBRUARY 2008Major refurbishment, reactivation works and leg extension on Hercules 208 of Hercules Offshore

SEPTEMBER 2008first lng upgrading/refurbishment project – lng carrier tenaga tiga of MisC

Upgrading entailed full cargo tank integrity assessment; cryogenic cargo-handling equipment overhaul; cargo valve actuator replacements (20 sets). Other works included ballast tank recoating (155,000m2); heating coil renewals (900m); hull blasting and recoating; major steelwork (87Mt); electrical cable upgrade; winch/windlass renewal.

DEC 20092nd lngC upgrading/refurbishment – lngC tenaga lima of MisC

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MHB is a one-stop centre for converting vlCCs, aframax tankers, offshore oil rigs and lng carriers into floating structures for the offshore oil and gas industry; such as

floating production, storage and offloading units (fPsOs), floating storage and offloading units (fsOs), MOPUs, MODUs and floating storage units (fsUs).

MHB – the only company in Malaysia that has completed fPsO and fsO conversion projects – completed its first fPsO conversion on Mv Hitra (now fPsO Perintis) on March 1999 and now has a track record of over 10 conversion projects.

Offshore conversion

“Our expertise both in marine repair and oil and gas puts us in a unique position to undertake these type of conversions. This remains one of our core business areas stated de Soras.

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Key accomplishments

• FSO Yoho Development Project

• Conversion of FSO ANGSI

• Conversion of FPSO Kikeh

• Conversion of FSO Abu

• Conversion of FPSO Bunga Kertas

• Conversion of jack-up rigs to MOPU

• Conversion of FPSO Cendor

• Conversion of FPSO Ruby 2

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MHB offers a full range of offshore construction services for the offshore and onshore oil and gas industry, from detailed engineering design and procurement to construction, installation, hook-up

and commissioning (EPCiC).

MHB’s extensive track record includes the construction of oil and gas platforms, jackets, topsides, process modules, turrets, sPaRs, semi-submersibles, floating production systems, mooring buoy systems, mobile offshore production units, living quarters and substructures.

the fPsO Kikeh was the first deepwater fPsO in Malaysia and the sPaR platform was the first to be installed outside the gulf of Mexico.

in May 2013, MHB successfully delivered to MisC the first deepwater floating Production system (fPs) in the asia-Pacific region – gumusut-Kakap fPs. the 42,000 dwt fPs will operate off sabah, Malaysia. Backed by an established offshore track record, MHB is recognised as the only fabricator in Malaysia with the capability to undertake the construction of deepwater structures.

Offshore construction

“One of our proudest moments was the completion of the Kikeh Dry Tree Unit Truss SPAR and FPSO Kikeh acclaimed de Soras

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Key accomplishments

• Kikeh Dry Tree Unit Truss sPaR

• Kinabalu Gas Processing Platform (KnPg-B)

• Tangga Barat Central Processing Platform (tBCP-a)

• B11K-A Topside

• MCR-A Topsides for offshore turkmenistan

• Angel Topside for offshore australia

• BP Angola Turret

• Jubilee External Turret

• South Angsi A (MOAB II)

• Gumusut-Kakap Semi-sub FPS

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“Safety remains paramount - there is no compromise...the expectation of zero ‘lost time injury’ has been raised even higher this year” underscored the MD/CEO

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SAFEty rEMAinS pArAMountOn 10 april 2012, MD/CEO launched MMHE 10 safety Rules with the tagline “Hand-in-Hand nobody gets Hurt” and the message “working together hand in hand towards the same goals will protect the safety of our people and demonstrate our safety commitment in our plan, task and execution.”

MHB is OHsas 18001:2007 and isO 14001:2004 certified

360° cuStoMEr AttEntion AnD Support MHB’s project teams work personally with clients to ensure proper understanding and fulfilment of their needs which could be in terms of work scope, working period, schedule, budget and other project requirements. Dedicated and experienced Customer service teams at MHB carry out their crucial role in every project, carefully attending to their clients’ personal and operational needs. Enhancing project execution, MHB’s two yards are endowed with ample fully-equipped client offices with modern office furnishings and communication facilities.

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“I thank the staff and the management of MMHE for their commitment and valuable contributions through the past 40 years. My wish on this anniversary year is that MMHE continues and sustains its contributions towards Malaysia’s wealth creation and nation building,” concluded the Company’s MD/CEO

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Continuing the journeyt

hrough MMHE, MHB has succeeded to be the leading marine and heavy engineering services provider in Malaysia yet it is raising the bar to be a High Performing Organisation by 2014 through its transformation programme.

the Company will continue to grow its capabilities through people development programmes and strategic partnerships such as with samsung Heavy industries of south Korea, technip sa of france and atB Riva of italy.

to further enable its aspirations, the Company is investing around RM 2.7 billion in its yard optimisation exercise, enhancing and modernizing its facilities and workshops.

Being one of Malaysia’s most successful companies, MHB strives to fulfil its national responsibility. “Under the Economic Transformation Programme, the government’s intention is to make Malaysia the No.1 Asian hub for old field services, especially in deepwater,” said the MD &CEO. “We are well-positioned in terms of our expertise and experience to partake in this endeavour. And that is why we are cleaning up our house and putting in place a number of initiatives to further improve our capabilities all round. It is definitely a fitting goal to mark our 40th anniversary.”