KUALA LUMPUR: Coastal Contracts Bhd has announced that a consortium led by its joint venture company Coastoil Dynamic SA De DV has entered into a service agreement with Pemex Exploracion and Produccion to undertake an onshore gas conditioning plant project, with a contract value of about RM4.5bil.

       Pemex is a subsidiary of Petroleos Mexicanos, a Mexican state-owned petroleum company.

       In a statement, it said the project named EMC Papan Plant has a capacity of 300mmscfd at Ixachi field, Tierra Balanca in Veracruz, Mexico.

       The firm period for this contract is 3,902 days, including the construction period of 250 days and the operations and maintenance period of 10 years.

       "The scope of work for this contract comprises of engineering, procurement, construction, operation and maintenance for the gas conditioning plant and its related infrastructure," said the group.

       According to the statement, EMC Papan Plant is part of the Mexico government's plan to make gas accessible to every person in the country.

       Coastal group executive chairman Ng Chin Heng said the group is optimistic over its pursuit of more projects related to Pemex’s production value chain amid a steady recovery of the industry.

       "With the oil price hovering around USD70 per barrel and the underinvestment in the industry during the past few years, oil majors are expected to increase capital expenditure spending in year 2022.

       "We believe that Coastal and our joint venture company will be able to capitalise these opportunities," he added.