Publication Source: The Sun Daily
Upstream oil and gas service provider Sapura Energy Bhd, which has secured new jobs worth RM6.3 billion this year, expects activity levels to remain subdued in the near term and competition to remain intense, despite a rebalancing of supply and demand dynamics triggering a return in investment appetite.
The group believes that oil price will remain volatile in the medium term driven by fundamental supply and demand dynamics.
Some of the notable wins for the group include the Trans Anatolian Gas Pipeline in Turkey, EPCIC of B-127 Project in India, KMZ sour gas pipeline in Mexico, long-term Plug and Abandonment contract in Brunei, and decommissioning work in Malaysia, Brunei and Australia.
As for its exploration and production segment, its B15 SK310 gas field is seeing significant progress and is expected to produce its first gas by third quarter of this year. This is coupled with the additional gas discoveries for SK408 offshore Sarawak.
Going forward, Sapura which saw a weak first quarter in the current financial year, will be leveraging on its in-house expertise to identify new opportunities to grow its portfolio of resources and reserves.
“We will continue to pursue our strategies on global market expansion and cost optimisation, and setting the scene right as the industry finds its way back to recovery,” it said in a statement released after its AGM yesterday.
Sapura’s share prices dipped 1.27% to close at RM1.55. Some 5.17 million shares changed hands, bringing its market capitalisation to RM9.28 billion.