Sapura Energy bags RM760 mil worth of contracts
Date: 11.01.2019.

Publication Source: The Edge Markets

KUALA LUMPUR (Jan 7): Integrated oil and gas group Sapura Energy Bhd has been awarded four new contracts and one extension with a combined value of RM760 million.

The jobs involve three drilling contracts and two contracts for the engineering and construction (E&C) segment, the group said today.

However, Sapura Energy did not provide a breakdown of the value of each contract.

In Angola, Sapura Energy Angola LDA was awarded a two-year contract by a unit of Chevron Corp for the provision of a semi-submersible tender assisted drilling rig.

The contract is expected to commence in the second quarter of 2020 with two possible extensions of six months each.

In Malaysia, Sapura Drilling Asia Sdn Bhd (SDASB) extended its contract with Sarawak Shell Bhd/Sabah Shell Petroleum Company Ltd for the provision of its semi-submersible tender assisted drilling rig Sapura Esperanza, namely to drill three wells offshore Sarawak.

SDASB was also awarded with a contract extension by Petronas for semi-tender assisted drilling rig Sapura Berani to drill two wells in Sabah.

All works by SDASB are expected to be completed by the first quarter of 2020, said the group.

For the E&C segment, Sapura Fabrication Sdn Bhd (SFSB) was awarded an engineering, procurement, construction and commissioning (EPCC) contract by Petronas Floating LNG 1 (L) Ltd.

The job is to relocate and tie-in Petronas’ Floating liquefied natural gas vessel PFLNG1 from its current location at Kumang Cluster, offshore Sarawak, said Sapura Energy, with works expected to complete by third quarter of 2020.

SFSB was also required by Hess Exploration and Production Malaysia BV to perform additional scope for offshore transportation and installation under an existing contract announced on Feb 5, 2018.

The additional scope — which is for the provision of engineering, procurement, construction, commissioning plus installation (EPCC+I) for FFD Phase 2 Facilities, North Malay Basin — is expected to be completed by the second quarter of 2020.

Shares of Sapura Energy lost half a sen to close at 28.5 sen, which is below its five-for-three rights issue price of 30 sen per share. The last date for the acceptance of the cash call is next Wednesday (Jan 16).