This article first appeared in The Edge Financial Daily on June 22, 2018

KUALA LUMPUR: Leading oil and gas services provider Sapura Energy Bhd has bagged nine contracts worth approximately RM1.8 billion, bringing its accumulative contract wins to date to RM4.5 billion for the group.

The combined value of the contracts represents a threefold jump or an increase of nearly 250% compared with the value achieved in the same corresponding period in the previous year, between February and June 2017, the group said in its filing with the exchange yesterday.

Through its wholly-owned subsidiaries, the group will be executing a series of diverse jobs across the upstream value chain in Malaysia, Australia, India and Mexico.

In Malaysia, Sapura Drilling Asia Sdn Bhd has been awarded a contract for the provision of its semi-submersible self-erecting tender assist drilling rig, Sapura Berani, and drilling services from Petronas Carigali Sdn Bhd for three wells in Malaysian waters.

In addition, Sapura Drilling accepted an extension of its contract with Sarawak Shell Bhd/Sabah Shell Petroleum Co Ltd (Shell) for the provision of its semi-tender assist drilling rig Sapura Esperanza.

The contract was combined with an additional assignment by Shell to EQ Petroleum Production Malaysia Ltd.

The purpose-built Sapura Esperanza will be used for one well for Shell in F14, offshore Sarawak, and two wells for EnQuest at the Seligi field in Block PM8, offshore Terengganu.

Meanwhile, Sapura Fabrication Sdn Bhd has been awarded a contract by its wholly-owned subsidiary, Sapura Exploration and Production (Sarawak) Inc, for the provision of engineering, procurement and construction (EPC) for SK408 Larak and  the Bakong Development Project. The fields will be developed as two separate wellhead platforms tied back to the existing processing facility and the Petroliam Nasional Bhd Malaysia Liquefied Natural Gas Complex in Bintulu.

Sapura Fabrication has also been awarded a contract by Sarawak Shell Bhd for the provision of EPC for the SK408E Gorek Development and F6 Brownfield Integrated Module Project. The scope comprises EPC works for the Gorek wellhead platform and the new Brownfield Integrated Module on the F6 processing complex.

In Australia, Sapura Energy Australia Pty Ltd won an award to undertake the provision of Riserless Light Well Intervention services for three wells located in the Montara development area, Timor Sea from PTTEP Australasia (Ashmore Cartier) Pty Ltd.

The project will be executed by its DP2 Subsea Construction Vessel, Sapura Constructor, and in-house Light Well Intervention Systems, including the Intervention Compensation System and Subsea Intervention Device.

In India, Sapura Fabrication, which has scored its third contract win during this period, will undertake Subsea Wells and Pipeline Replacement Project V for Oil and Natural Gas Corp Ltd in India. The contract covers the laying of subsea pipelines, installation of umbilical and topside modification on the platforms.

Additionally, Sapura Offshore Sdn Bhd has secured a lump sum turnkey engineering, procurement, construction, installation and commissioning contract from Sikka Ports & Terminals Ltd (formerly known as Reliance Ports and Terminals Ltd).

The scope of work comprises residual engineering and supply of equipment and materials for Berth A2 and modification of Berth D (additional Mooring Dolphin) at the Marine Terminal in Jamnagar, Gujarat, India. Sapura Engineering & Construction (India) Pvt Ltd will undertake the construction, erection, installation, testing, pre-commissioning and commissioning support.

Meanwhile in Mexico, SapuraKencana Mexicana, S.A.P.I de C.V has been awarded a contract to undertake EPC of a gas oil pipeline from the PP-Ayatsil-B platform to the E-KU-A1 platform (line 16) in the Gulf of Mexico for PEMEX Exploration and Production Mexico.

Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin said the new contract wins are a continuation of the group’s strategy to expand its global footprint.

The jobs have various completion time frames, with the latest being the second quarter of 2020.

The group said the contracts are expected to contribute to its earnings for the financial year ending Jan 31, 2019 and beyond, within the duration of the contracts and extension periods.

Sapura Energy shares closed 2.5 sen or 4% lower at 60 sen each, with a market capitalisation of RM3.65 billion.