Sapura Energy Bhd’s wholly-owned subsidiaries have secured four contracts, including contract extension, with a combined value of about RM815 million.
In a filing with Bursa Malaysia today, Sapura Energy said the contracts are expected to contribute positively towards the earnings of the group for the financial year ending Jan 31, 2019.
For its engineering and construction division in Malaysia, Sapura Fabrication Sdn Bhd has received a contract to undertake the provision of Pan Malaysia maintenance, construction and modification contract for ExxonMobil Exploration and Production Malaysia Inc (EMEPMI), said the announcement.
It added the contract scope of work comprises procurement, onshore pre-fabrication works, offshore maintenance, construction and modification works related to topside maintenance, workover preparation and facilities improvement projects for EMEPMI offshore facilities in Peninsular Malaysia water.
The contract is a call-out contract where works will be carried out according to work orders issued by EMEPMI based on contract unit rates and prices.
The duration of the primary contract will be for a period of five years, expiring in July 2023, with an option for a one-year extension.
Simultaneously, in Australia, Normand Sapura Pty Ltd was awarded a contract from Quadrant Energy Australia Ltd to undertake an offshore installation works for its East Spar intelligent pigging and removal project under its engineering and construction division.
Sapura Energy said the contract involves the intelligent pigging of the East Spar subsea pipeline from East Spar pipeline end manifold (PLEM) up to the onshore processing facilities in Varanus Island, off the North West coast of Western Australia in Commonwealth waters.
“It also involves the recovery of all subsea infrastructures from three subsea wells (ES1, ES3 & ES6) consisting of subsea heat exchangers, tie-in spools, flexible flowlines and associated control umbilical for dismantling and disposal in accordance with regulations,” it said.
The contract will be executed by Sapura constructor, a DP2 subsea construction & saturation diving vessel.
In Nigeria, Sapura Energy said Sapura Offshore Sdn Bhd was awarded the subcontract by Saidel Limited for the provision of construction engineering and offshore construction of a 16” Southern SWAMP sales gas evacuation pipeline project in the Delta Region of Nigeria operated by Shell Petroleum Development Company of Nigeria.
It said the scope of work comprises 16” x 18.4 kilometres pipeline from onshore target Box to EA riser platform - A including 1.62 kilometres beach pull, three sections tie-in spool at EA riser platform - A and two concrete mattress installation at crossing location offshore Nigeria.
Both the Australia and Nigeria works are expected to be completed by the fourth quarter of 2019 (4QFY19), Sapura Energy added.
Meanwhile, for its drilling segment, Sapura Energy said Sapura Drilling Sdn Bhd has received a one-year extension on its contract from Brunei Shell Petroleum Co Sdn Bhd for the provision of a semi-submersible tender assisted drilling rig, “Sapura Pelaut”, and drilling services.
The scope of the contract extension comprises the provision of a semi-submersible tender assisted drilling rig for a firm commencing from 1QFY20 with a further one year option in Bruneian waters.
Sapura Energy shares closed one sen or 1.15% lower at 43 sen, giving it a market capitalisation of RM2.58 billion.