KUALA LUMPUR: Sapura Energy Bhd and its consortium partner have clinched a RM3 billion contract from Oil and Natural Gas Corporation (ONGC) in India.
The consortium partners comprising the group’s wholly-owned subsidiary of Sapura Energy, Sapura Fabrication Sdn Bhd (Sapura Fabrication) and Afcons Infrastructure Limited (Afcons), will be jointly undertaking engineering, procurement, construction, installation and commissioning (EPCIC) works for a central processing platform (CPP) and living quarters for KG-DWN 98/2 NELP block.
Afcons is the construction arm of Shapoorji Pallonji Group, India’s leading engineering and construction conglomerate.
The block, which is located offshore the Godavari Delta on the east coast of India, covers an area of 7,295 kilometres of Krishna-Godavari basin with water depth ranging between 300 metres to 3,200 metres.
According to The Economic Times, ONGC has about 35 billion cubic meters of recoverable reserves in discoveries in the shallow sea off Andhra Pradesh on the east and off Gujarat and Mumbai on the west coast blocks.
The three blocks in Krishna Godavari basin, Gulf of Kutch and Mumbai offshore can produce about 10 million metric standard cubic metres (mmscmd) of gas and an equivalent amount can be produced from its onshore discoveries in blocks like Bantumili, Mandapeta and Bhuvanagiri.
Sapura Fabrication’s share in the consortium is 48.3 per cent which translates to RM1.47 billion in contract value.
The new contract win enhances the company’s presence in the growing market and Sapura Energy will continue its contribution to India’s oil and gas industry and in helping to meet the country’s increasing energy demand.
The project is an opportunity for Sapura Energy to participate in a key development for ONGC, leveraging on the company’s established deepwater knowledge and capabilities.