Sapura Energy bags RM760m worth of contracts

KUALA LUMPUR (Jan 8): Sapura Energy Bhd has been awarded four new contracts and one extension with a combined value of RM760 million.

The jobs involve three drilling contracts and two contracts for the engineering and construction (E&C) segment, the group announced yesterday. However, Sapura Energy did not provide a breakdown of the value of each contract.

In Angola, Sapura Energy Angola LDA was awarded a two-year contract by a unit of Chevron Corp for the provision of a semi-submersible tender assisted drilling rig. The contract is expected to commence in the second quarter of 2020 (2Q20) with two possible extensions of six months each.

In Malaysia, Sapura Drilling Asia Sdn Bhd (SDASB) extended its contract with Sarawak Shell Bhd/Sabah Shell Petroleum Co Ltd for the provision of its semi-submersible tender assisted drilling rig Sapura Esperanza, namely to drill three wells off Sarawak.

SDASB was also awarded a contract extension by Petronas for semi-submersible tender assisted drilling rig Sapura Berani to drill two wells in Sabah.

All works by SDASB are expected to be completed by 1Q20, said the group.

For the E&C segment, Sapura Fabrication Sdn Bhd (SFSB) was awarded an engineering, procurement, construction and commissioning (EPCC) contract by Petronas Floating LNG 1 (L) Ltd. The job is to relocate and tie-in Petronas’ floating liquefied natural gas vessel PFLNG1 from its current location at Kumang Cluster, off Sarawak, said Sapura Energy, with works expected to completed by 3Q20.

SFSB was also required by Hess Exploration and Production Malaysia BV to perform aditional scope for offshore transportation and installation under an existing contract announced on Feb 5, 2018.

The additional scope — which is for the provision of EPCC plus installation (EPCC+I) for FFD Phase 2 Facilities, North Malay Basin — is expected to be completed by the 2Q20.

Shares of Sapura Energy lost half a sen to close at 28.5 sen, which is below its five-for-three rights issue price of 30 sen per share. 
The last date for the acceptance of the cash call is Jan 16.

This article first appeared in The Edge Financial Daily, on Jan 8, 2019.

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