SapuraKencana Wins Six New Contracts, One Extension, Worth a Combined RM513m
Date: 29.06.2016.

Pulication source: The Edge Markets

KUALA LUMPUR (June 28): SapuraKencana Petroleum Bhd (SKP)’s wholly owned units have secured new contract wins and extensions that carry a combined value of about US$125 million (approximately RM513 million).

In a filing with Bursa Malaysia today, SKP said SapuraKencana Drilling Tioman Sdn Bhd (SKD Tioman) has secured one new contract, while SapuraKencana HL Sdn Bhd (SKHL) has won three; SapuraKencana Australia Pty Ltd (SKA) has also bagged two other jobs.

Meanwhile, another unit, SapuraKencana Drilling Jaya Ltd (SKD Jaya) has managed to extend one of its existing contract.

SKD Tioman was awarded a contract by JX Nippon Oil & Gas Exploration (M) Ltd for the provision of Semi-submersible Tender Assist Drilling Rig “SKD Berani”, for JX Nippon’s development drilling campaign offshore Malaysia for a minimum 150 days.

The contract comprises three firm wells, with an option of two more, and is expected to commence by July 2016.

The three jobs that SKHL secured comprised of a contract from BASF Petronas Chemicals Sdn Bhd, one from Seles ES Malaysia Sdn Bhd, and one from SapuraKencana's other own subsidiary, SapuraKencana Energy Sarawak Inc (SKE Sarawak).

The job from BASF Petronas Chemicals is a nine-month contract for the procurement, fabrication, construction, installation and pre-commissioning work for the company's infrastructure and utility upgrading projects.

The work involves the provision of supervision, manpower, equipment and materials to carry out the construction, installation and pre-commissioning of three packages; boiler, condensate polishing unit and used firefighting water system, complete with common facilities.

The job from Selex ES is a 19-month deal for the provision of Front End Engineering Design (FEED) and engineering, procurement, construction, installation and commissioning (EPCIC) of the radio shortwave support system (RS3) project for the Petronas Offshore Facilities off the west coast of Sabah.

AS for the award from SKE Sarawak, it is a 14-month contract for the provision of procurement and construction for the topside package and jacket package for the SK310 B15 development. It should be completed by the second quarter of 2017.

The first contract that SKA secured is from Woodside Energy Julimar Pty Ltd for phases of the Balnaves Decommissioning project for the Balnaves field, which is located offshore North-West Australia.

The deal, which is for about 6 months, involves project management, engineering and offshore execution for the removal of certain subsea infrastructure associated with the Balnaves field.

The second job that SKA bagged was a light well intervention contract on a call-off basis from Shell Australia. The contract is for a duration for five years.

SKD Jaya, on the other hand, has accepted an extension to its contract with BP Trinidad & Tobago LLC for the provision of Semi-submersible Tender Assist Drilling Rig, also named “SKD Jaya”.

BP Trinidad has extended the use of this rig for the development of its drilling campaign at offshore Trinidad and Tobago for an additional one well for approximately 45 days and additional work on an existing well for approximately 60 days.

The contracts, said SapuraKencana, are expected to contribute positively towards the earnings of the group principally for the financial year ending Jan 31, 2017 (FY17) and for the subsequent financial periods in accordance to their respective contract periods.

At 3.19pm, SapuraKencana's share price has risen 4.55% or 6 sen to RM1.38, valuing it at RM7.97 billion.