France's Technip and South Korea's Daewoo Shipbuilding & Marine Engineering (DSME) have won a $771m contract from Petronas to provide engineering services for a floating liquefied natural gas (FLNG) unit.
Under the deal, the Technip-Daewoo Consortium (TDC) will be responsible for engineering, procurement, construction, installation and commissioning (EPCIC) of the FLNG unit.
The FLNG vessel, which will have a length of 300m, width of 60m and maximum carrying capacity of 1.2 million tonnes per year, will be used to develop the Kanowit natural gas reserve off Bintulu, Sarawak.
Daewoo's shipyard in Okpo, South Korea, will be responsible for the engineering of the hull and the construction of the FLNG unit.
The recent contract follows the completion of a deal won by TDC in December 2010 for the front-end engineering design phase.
Technip and Daewoo earlier won the $2bn project to build the facility which is scheduled to operational in 2015.
Once operational, the vessel is expected to increase Malaysia's total LNG production capacity to 26.9 million tonnes a year from current 25.7 million tonnes.
DSME senior executive vice president and CBO Wan-Soo Ryu said, "DSME is expecting additional contracts with the development of underwater natural gas fields all over the world."
According to Petronas the FLNG unit will help unlock the gas reserves in Malaysia's remote and stranded fields currently seems uneconomical to develop.
Currently, Technip operates a fleet of specialised vessels for pipeline installation and subsea construction in 48 countries.