MHB unit wins RM200 million subcontract for offshore Sabah conversion project
MHB’s unit MMHE secured a RM200 million subcontract to convert a Mobile Offshore Drilling Unit into a Mobile Water Injection Facility for deployment offshore Sabah by 2025.
Source: Malaysian Marine and Heavy Engineering · August 6, 2026 at 12:07 AM · AI-assisted report
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JOHOR, 6 AUGUST 2026 —
MHB’s unit MMHE secured a RM200 million subcontract to convert a Mobile Offshore Drilling Unit into a Mobile Water Injection Facility for deployment offshore Sabah by 2025.
Market Impact
The award covers demolition, refurbishment, life extension and conversion work at MMHE’s West Yard in Pasir Gudang, Johor. The converted facility will use Uzma Engineering’s uzmaWIF system to support enhanced oil recovery efforts and increase production efficiency in the region. This is MMHE’s first floater conversion project for Uzma Engineering’s wholly owned subsidiary, Uzma Berhad.
Mohd Nazir Mohd Nor, MHB’s managing director and chief executive officer, said the contract reflects the group’s expertise in complex heavy engineering and marine conversion projects. “The conversion of the MODU into a Mobile WIF highlights MHB’s expertise in complex heavy engineering, marine repair and conversion projects,” he said. “This achievement reflects our commitment to supporting Malaysia’s energy sector.”
Dato’ Kamarul Redzuan Muhamed, group chief executive of Uzma Berhad, said the Mobile WIF will boost hydrocarbon output and extend field life. “Uzma pioneered the deployment of our mobile WIF solution in 2016 and it remains in operation today for our client,” he said. “Our WIF solution has been proven to increase hydrocarbon production as well as maintain pressure to extend the oil field life cycle.”
MMHE operates Malaysia’s largest fabrication yard and has completed more than 30 major conversion projects. The group also supports national energy security through its work with Petroliam Nasional Bhd on enhanced oil recovery programmes.
The subcontract adds to MMHE’s conversion backlog and reinforces its niche in offshore facility upgrades. The yard specialises in offshore construction, marine repair, conversion services and LNG carrier work. It has expanded into decarbonisation, building carbon capture units and offshore wind farm substations as part of Malaysia’s energy transition.
The converted Mobile WIF is scheduled for deployment in East Malaysia by mid-2025. Uzma said the project aligns with its strategy to diversify into new growth areas such as New Energy and digital solutions.
Related: Johor