Sapura Energy bags RM905m worth of contracts

Sapura Energy bags RM905m worth of contracts
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KUALA LUMPUR (Feb 5): Sapura Energy Bhd, formerly known as SapuraKencana Petroleum Bhd, said it has secured several contracts with a combined value of about RM905 million via its direct and indirect wholly-owned subsidiaries.

Sapura Fabrication Sdn Bhd secured three provision of engineering, procurement, construction and commissioning (EPCC) contracts.

One of the three contracts is for the Kinarut ERB West Compressor upgrading project for Petronas Carigali Sdn Bhd, which spans three years till the fourth quarter of 2020. The works entail the replacement and refurbishment of compressors and associated equipment at ERB WEST and Kinarut platforms.

The second contract, also awarded by Petronas Carigali, is for a minor EPCC project at Bokor Betty Brownfield and Rejuvenation for four and a half years, expected to expire in the second quarter of 2022. The job scope comprises Bokor rejuvenation and host tie-in works at existing platforms, as well as redevelopment of platform facilities to support Bokor EOR (enhanced oil recovery) and redevelopment of the two fields.

The third EPCC contract it secured, plus installation, is for the FFD Phase 2 Facilities in the North Malay Basin for Hess Exploration And Production Malaysia BV.

“The contracts' scope of works comprise engineering, procurement, construction and commissioning of a conventional 3-legged Terminal Wellhead Platform and a Minimal Wellhead Platform, with associated pipelines.

“The scope for offshore transportation and installation works associated to the above Contract is optional. Hess will notify Contractor in writing, if this option is exercised,” Sapura Energy said in a bourse filing today.

Meanwhile, Sapura Offshore Sdn Bhd has secured a contract to undertake transportation and installation works for the Bokor Central Processing Platform project for Malaysia Marine and Heavy Engineering Sdn Bhd, which is expected to be completed by March 2020.

The unit was also awarded a contract for the provisioning of offshore/onshore pipelines and terminal works for the Fifth Oil Berth project at Mumbai Port Trust, which is expected to be completed by May 2019.

All contracts announced are expected to contribute positively towards the earnings of the group for the financial year ending Jan 31, 2018 (FY18) and subsequent financial periods thereafter, in accordance with the duration of the contracts and extensions, if such options are exercised, Sapura Energy said.

Sapura Energy shares fell 3 sen or 4.08% to settle at 70.5 sen today, giving it a market capitalisation of RM4.22 billion. Over the past 12 months, the stock has declined 59.29%.