Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 5): SapuraKencana Petroleum Bhd announced that it has awarded eight contracts collectively worth RM1.58 billion (US$459 million).

The news contracts would probably help to stem the fall on its share price, which has taken a nosedive of late amidst concerns over the company’s prospects as a result of the sharp drop on crude oil prices.

Interestingly, its vice chairman Tan Sri Mokhzani Mahathir has picked up three million shares in the past two days.

In its filing to Bursa Malaysia today, the oil and gas (O&G) group said its fabrication, hook-up and commissioning (FHUC) division, and offshore construction and subsea services (OCSS) division both awarded three contracts each, while its drilling division awarded two contracts.

SapuraKencana’s wholly-owned subsidiary Kencana HL Sdn Bhd (KHL) that won all three FHUC contracts, while two were awarded by Petronas Carigali Sdn Bhd, one of it is an engineering, procurement, construction, and commissioning of two wellhead platforms for the Baronia and Tukau field.

One of the three FHUC contracts is expected to complete by the fourth quarter of 2018, the contract is worth about RM480 million. While the other RM140 million contract is for procurement, construction and commissioning (PCC) for the Angsi compression module by Petronas Carigali, expected to be completed by fourth quarter 2015.

KHL’s third award contract, which is worth US$26 million (RM89.7 million) is for the provision of brownfield works on three wellhead platforms, namely Muda Central Processing Platform (MDPP), Muda-A (MDA), and Jengka-B (JKB). These wellhead platform are for the phase 3 development project by Carigali-PTTEPI Operating Company Sdn Bhd, a company associated with PTT Exploration and Production Public Company Ltd (PTTEP), a top-ten publicly-listed company in Thailand stock exchange, according to PTTEP’s website.

For OCSS works, SKP’s wholly-owned subsidiary TL Offshore Sdn Bhd won a contract from Vestigo Petroleum Sdn Bhd for the Tembikai (OIL) Development, a development of Tembikai Marginal field located about 150km east of Terengganu, offshore peninsular Malaysia.

The works are regarding the provision of transportation and installation of the central processing platform for the Tembikai Oil Project.

The scope of work is valued at about US$12.9 million (RM44.505 million), and is expected to be completed around March 2015.

On top of that, SapuraAcergy (Australia) Pty Ltd, a wholly owned entity of SapuraAcergy Sdn Bhd (SASB), a joint venture company equally owned by SKP and Subsea 7 S.A., had entered into a sub-contract with Heerema Marine Contractors Australia Pty Ltd.

According to SapuraKencana, the sub-contract is for the provision of buoyancy tanks removal and disposal for the Chevron Wheatstone project which is located in Wheatstone field, Western Australia.

The sub-contract worth US$18 million (RM62.1 million).

SASB on the other hand, awarded a contract from Total E&P Myanmar for engineering, procurement, construction and installation of the Wellhead Platform 4 and Lower Compression Platform, Pipelines and Cable.

The contract works located in Yadana Field, offshore Myanmar. It is expected to be completed by 4Q2016, and valued between US$120 million and US$130 million (RM414 millon to RM448.5 million).

Also, SKP’s wholly-owned subsidiary SapuraKencana Drilling Holdings Ltd won a contract from Foxtrot International LDC (Foxtrot), a company incorporated in Cayman Islands, yet business activities is mainly in Abidjan, Ivory Coast.

The contract is for the provision of Foxtrot’s Semi-Tender Assist Drilling Rig “SKD Alliance”, with an option to extend for a further three wells.

This contract spans a period of about 400 days commencing February 2015, however SKP did not state the value of it in its filing.

Another wholly-owned subsidiary Seadrill Esperanza Limited, has accepted a three month extension to its contract with Hess Equatorial Guinea Inc, for the provision of its Semi-Tender Assist Drilling Rig “West Esperanza”.

The extension period commencing around September 2015.

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