Sapura Energy Berhad has secured three new contracts and a contract extension valued at approximately RM815 million in Australia, Brunei, Malaysia and Nigeria, bringing the total value in contract wins for this fiscal year-to-date to RM5.3 billion for the Group.
Yesterday Tan Sri Dato’ Seri Shahril Shamsuddin, President and Group Chief Executive Officer, Sapura Energy said that sustained high oil prices are encouraging recovery in investments which is driving increased activities for the company.
“One of the key areas we are seeing an increase in demand is Brownfield Maintenance and Rejuvenation, where Sapura Energy has established its track record among other upstream services,” he said.
Making an entry into Nigeria for its Engineering & Construction (E&P) segment, Tan Sri Shahril said that expanding Sapura Energy’s footprint in Africa will open up the market for both E&P and Services.
“Our aim is to build a sustainable presence and create a strong service and product supply chain by developing the local talent to support our future business in Africa, as we have done in Brazil and Mexico,” he finalised.
Below are the details for the three new contracts:
Sapura Offshore Sdn Bhd, a wholly-owned subsidiary of Sapura Energy has been awarded a subcontract by Saidel Limited to undertake Engineering and Construction of the 16-inch Southern SWAMP Sales Gas Evacuation pipeline in the Delta Region of Nigeria for Shell Petroleum Development Company of Nigeria. The scope of the project includes installation of approximately 20 kilometres of gas pipeline and is expected to be completed by Q4 FY19.
Normand Sapura Pty Ltd, a wholly-owned subsidiary of Sapura Energy, has won an award for the provision of the inspection and recovery of subsea structures for the East Spar Project in offshore Western Australia for Quadrant Energy.
Utilising the company’s subsea construction vessel, Sapura Constructor, the team will be leveraging its in-house capabilities to perform an inspection to detect corrosion or any other irregularities in the inner walls of the pipeline from the East Spar pipeline end manifold (PLEM) to the onshore processing facilities in Varanus Island, Australia. The contract also involves the recovery of subsea infrastructures from three subsea wells.
Another wholly-owned subsidiary of Sapura Energy, Sapura Fabrication Sdn Bhd, has just been awarded a five-year contract to undertake the provision of Pan Malaysia Maintenance, Construction and Modification for ExxonMobil Exploration and Production Malaysia Inc.
The contract scope includes procurement and on-shore pre-fabrication works, offshore maintenance, construction and modification to enhance ExxonMobil Exploration’s facilities offshore Peninsular Malaysia. This contract is a call-out contract and will run for a period of five years expiring in July 2023 with an option for a one-year extension at the discretion of the other ExxonMobil Exploration.
Contract Extension: Brunei
Sapura Drilling Sdn Bhd has also secured a contract extension for the provision of semi-submersible tender assisted drilling rig, Sapura Pelaut, for Brunei Shell Petroleum (BSP). The one-plus-one-year contract extension for Sapura Pelaut will be effective Q1 FY2020.