This article first appeared in The Edge Financial Daily, on July 26, 2016.

KUALA LUMPUR: SapuraKencana Petroleum Bhd has clinched a US$113 million (RM461 million) contract from the Mexican national oil corporation to construct a gas pipeline in the North American nation.

In a statement yesterday, the upstream oil and gas company said its wholly-owned unit SapuraKencana Mexicana S.A.P.I. de C.V. won the contract to build the 18km pipeline in Ciudad del Carmen in the state of Campeche.

The 36-inch (91cm) sour gas pipeline construction contract was awarded by Pemex Exploracion y Produccion, a unit of national oil corporation Petroleos Mexicanos.

The contract’s scope of works includes transportation and installation of pipelines, crossings, top side modifications and subsea works, including procurement and project management, said SapuraKencana. They will be carried out from this month until March next year.

SapuraKencana, which has been hit hard by the downtrend in oil prices, reportedly said on June 28 that its subsidiaries had secured new contracts and extensions with a combined value of US$125 million.

The contracts and extensions included those with Petroliam Nasional Bhd group and several other international oil and gas players.

SapuraKencana is Malaysia’s largest oil and gas company by market capitalisation. At its share price of RM1.45 yesterday, the company’s market capitalisation was RM8.69 billion.