China's Guangzhou Salvage (GZS) has been awarded a significant Engineering, Procurement, Construction, and Installation (EPCI) contract by Carigali-PTTEPI Operating Company (CPOC) for the Phase 7 development of offshore Block B-17-01. This block is part of the integrated development project for the Malaysia-Thailand Joint Development Area (MTJDA) blocks B-17 & C-19 and B-17-01, which involves the phased development of gas condensate fields in the southern Gulf of Thailand.

Project Scope and Details

GZS's workscope encompasses the transportation and installation of four wellhead platforms, along with the EPCI of approximately 44 kilometres of subsea pipelines. The project is scheduled to commence in the second quarter of 2027 and will be executed in water depths ranging from 60 to 65 metres.

Contract Award and Competition

The contract was secured through a competitive international tender. Other participants in the bidding process included China Communications Construction Company (CCCC), Vantris Energy, Sinopec, Hilong Group, and Timas Suplindo. For execution, GZS will deploy its specialized vessels: the Huazhaolong for heavy lift and installation operations and the Huarunlong for the pipelay work.

Project Context and Significance

This award represents another major international EPCI win for GZS, following its work on other regional projects such as Thailand's BUN3 and BUN4 and Myanmar's Zawtika 1E developments. The Phase 7 development is part of the ongoing exploitation of fields discovered since the first find, Muda, in 1995. Subsequent discoveries on the blocks include numerous fields such as Muda South, Tapi, Jengka, Andalas, and Thanthong.

Operational and Geographical Context

CPOC operates the blocks under a joint operating agreement between Petronas Carigali JDA and PTTEP International Limited. The MTJDA itself is a zone of overlapping continental shelf established by a 1979 agreement for joint exploration and exploitation. It is located approximately 150 kilometres off Kota Bharu, Malaysia, and about 260 kilometres from Songkhla, Thailand, in the lower Gulf of Thailand near the South China Sea.