Sapura Energy wins seven contracts worth RM1.2b in Malaysia, Thailand

Sapura Energy wins seven contracts worth RM1.2b in Malaysia, Thailand
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KUALA LUMPUR (July 21): Sapura Energy Bhd has secured seven contract wins and extensions in Malaysia and Thailand for its engineering and construction (E&C), operations and maintenance (O&M), and drilling segments with a combined value of RM1.2 billion.

The group said that for the E&C segment, its subsidiary Sapura Offshore Sdn Bhd won contracts from PTTEP Sarawak Oil Ltd and Enquest Petroleum Production Malaysia Ltd under the Pan Malaysia Transportation and Installation of Offshore Facilities 2021 campaign.

In a statement to Bursa Malaysia, Sapura Energy said the scope of work from PTTEP includes transportation and installation, engineering, survey, interfacing, topside installation and handover, and removal of temporary structures.

The contract duration is for eight months, effective Feb 2, 2021.

Meanwhile, the contract award from EnQuest is for the replacement of a 10-inch gas lift subsea pipeline and risers. The scope of work includes engineering, transportation, installation of risers, subsea tie-ins and pre-commissioning of the pipelines.

Scheduled for five months, the work is expected to be completed by the fourth quarter of 2021.

For the O&M segment, Sapura Energy’s subsidiary Sapura Fabrication Sdn Bhd secured contracts from EnQuest, as well as Sarawak Shell Bhd (SSB) and Sabah Shell Petroleum Company Ltd (SSPC).

The group said the contract awarded by EnQuest is for the provision of maintenance, construction, and modification for its PM8 Extension Production Sharing Contract for a period of one year effective March 14, 2021.

The award from SSB and SSPC is for the provision of topside major maintenance services works in various projects located offshore Sabah and Sarawak, from April 29, 2021 to Aug 19 2023.

As for the drilling segment, Sapura Drilling Asia Sdn Bhd has been awarded two contracts from Petronas Carigali Sdn Bhd for its drilling activities offshore Malaysia.

“The award of the first contract is for the provision of tender-assist drilling rig services for a duration of two years with an option of a two-year extension, commencing April 26, 2021. The contract is based on a call-out basis, subject to rig availability and suitability with the client’s requirement.

“In the second award, Sapura Energy Bhd, leveraging on its drilling engineering capabilities within Sapura Drilling, SapuraOMV and in partnership with Halliburton, secured an integrated rig, drilling, and completion (i-RDC) services contract for six wells offshore Malaysia. Driven by innovation and collaboration, the awarded i-RDC services contract is the first of its kind in Malaysia for an offshore drilling campaign.

“Scheduled to commence in the third quarter of 2021, the contract will be executed by Sapura Esperanza semi-submersible tender-assist drilling rig,” said Sapura Energy.

Sapura Drilling also was awarded a new contract and a contract extension for its drilling rigs from PTTEP group of companies.

PTTEP Energy Development Company Ltd awarded Sapura Drilling with a contract, with optional extensions for up to 12 months, for the tender assist drilling rig Sapura T-17. The duration of the contract is for three years, ending Nov 15, 2021.

“Meanwhile, Sapura Drilling also received a contract extension notification from PTT Exploration and Production Public Company Ltd and PETTEP International Ltd. The extension is for its tender assist drilling rig Sapura T-18, for an additional four months to Oct 31, 2021.

“Sapura Drilling has now eight drillings’ rigs contracted for work in 3QFY22, increasing its fleet utilisation rate to 57%,” said Sapura Energy.

Sapura Energy’s share price rose half a sen or 4.17% to close at 12.5 sen, giving the group a market capitalisation of RM2 billion. The counter saw 40.24 million shares changing hands.

S Kanagaraju