SapuraKencana Petroleum Bhd said the proposed JV is for the parties to work together for the provision of after-sale services of rotating oil & gas equipment that GE Power Systems's O&G business division has sold or will sell to its customers.

Alliance Research Sdn Bhd has maintained overweight call on sector, with SapuraKencana as its top pick.

SapuraKencana Petroleum Bhd said the contracts are for the integrated transportation and installation of offshore oil and gas (O&G) facilities from 2014 to 2016 with an optional extension of one year.

A subsidiary of SapuraKencana Petroleum Bhd, TL Offshore and Seabras Serviços De Petróleo (SSP), a subsidiary of Seadrill have acquired 50% each equity stake in a new company in Austria known as Seabras Sapura Holding (SSH) by subscribing to 17,500 common shares of par value EUR1 each respectively.

Two packages worth RM800mil are keeping the company's yard and OSVs busy.

The overall market sentiment on the local course continued to consolldate further, moving in countertrend with the better performances on the Wall Street and regional stock markets.

Petroliam Nasional Bhd (PETRONAS) has awarded a major 13-package, five-year offshore hook-up, commissioning and maintenance services contract with a total work value of about RM10 billion to six local service providers.

Alliance IB Research analyst Arhnue Tan said exciting times are ahead for SapuraKencana Petroleum Bhd with the first Petrobras contract commencing next year, the tender rigs purchase starting to contribute earnings and the Berantai marginal field moving towrads full production.

The vessel had been engaged on a long term contract with SapuraClough Offshore Pty Ltd. After five years had passed, SapuraClough declared a purchase option it had for the vessel.

The news is a positive for SapuraKencana Petroleum Bhd as the offshore assets will yield long term steady recuring income for the group, especially considering the sizeeable 2P reserves of Newfield's assets.