KUALA LUMPUR (Nov 29): After recently securing a joint venture for its profitable exploration and production segment, Sapura Energy Bhd is now in talks with several potential partners for its drilling segment. 

President and chief executive officer Tan Sri Shahril Shamsuddin confirmed that the integrated oil and gas group has already been approached by at least one company to participate in its drilling business.  

“Actually it is quite similar [to Sapura Energy’s recent tie up with Austrian OMV Aktiengesellschaft (OMV AG)] — it is the other company seeking us,”  Shahril told reporters after an extraordinary general meeting of the group.

“But the price must be right,” he said, adding Sapura Energy has included a prerequisite that the partner must be able to introduce the group into new markets and to provide access to new equipment at competitive price in the future.  

Drilling is one of Sapura Energy’s three core businesses, alongside exploration and production, and engineering and construction. 

The partnership sought by Sapura Energy may be referenced to its partnership with OMV AG entered into on Nov 11.  At the time, Sapura Energy carved out 50% of its E&P unit Sapura Upstream Sdn Bhd — its only profitable segment presently — to OMV for a value of up to US$975 million. 

Sapura Energy currently owns 16 rigs, comprising eight semi-tender rigs and eight tender assist rigs.

Amid the sectoral downturn in recent years, the group has incurred massive impairments over its drilling assets, including the RM2.1 billion incurred in the fourth quarter ended Jan 31, 2018.

Utilisation rate for the assets — which Shahril described as ‘relatively young’ with average remaining lifespan of 15-20 years — currently stands at 35%. 

On whether Sapura Energy’s engineering and construction segment will also welcome new partnership or divestments, Shahril said: “That is our core business, so there is no [plan to do so].” 

Shares of Sapura Energy rose half a sen or 1.45% to 35 sen, with 11.27 million shares traded, giving it a market capitalisation of RM2.07 billion.