Federal International's subsidiary seals US$12 million procurement contract for Total Indonesie's Tunu Phase 8 project for compression platform

Singapore mainboard-listed Federal International (2000) Ltd, an established flowline control products distributor and service provider supporting the oil and gas and related industries in the region, announced that its subsidiary, Federal Hardware Engineering Co. Pte Ltd (FHE), has signed a procurement contract with PT Gunanusa Utama Fabricators (Gunanusa). The total project value is estimated to be US$12 million.

Under the contract, FHE will undertake to supply all piping materials and fittings, structural steels and rolled cans and miscellaneous items required for the project whose duration period is 20 months.

Earlier in 1999, FHE had entered into a contract with Gunanusa to supply flowline control products and provide procurement services for Total Indonesie's Tunu Phase 7 EPSC1 Project for Total Compression Platform located in East Kalimantan, Indonesia.

Gunanusa, a key customer of Federal who is 10 per cent indirectly owned by Federal, is mainly involved in executing large turnkey projects in offshore platform projects, container cranes, boilers and pressure vessels.

Commented Mr K K Koh, Federal's Executive Chairman and CEO, "We are pleased to expand our role as a procurement agent to help our customers source for the required products and services. It reflects the robustness of the oil and gas industry and the strong growth prospects for Federal. At the same time, this deal reinforces our firm belief in Indonesia as a key growth market."

Federal is principally involved in the distribution of flowline control products (including valves, structural steel, steel flanges/connectors and pipe fittings) to the oil and gas, power, chemical and pharmaceutical industries. (*)