Sapura Energy Berhad registered a strong start to its financial year with five new contracts valued at approximately RM1.3 billion (US$315 billion) for its engineering and construction as well as drilling segments, the company said on April 12.
Among the new wins is the submarine rescue service contract for The Royal Australian Navy, which is a first undertaking for the group. Sapura Energy also marked a new entry into Egypt for works in the Gulf of Suez, along with other wins across Malaysia and Indonesia.
The contract wins demonstrate Sapura Energy’s continued pursuit to deepen its presence in existing core markets, break into new markets and expand its scope of services. The growing order book is expected to increase asset utilization for the group and contribute to improving its financial performance. The group now has 10 key operating centers to execute work strategically around the globe.
Marking a new footprint in Egypt, Sapura Offshore Sdn Bhd (Sapura Offshore) has been awarded a subcontract by Pan Marine Petroleum Services Co. The scope of work comprises the installation of six new subsea pipelines in the Gulf of Suez for the Gulf of Suez Petroleum Co. (GUPCO), a joint venture between BP Plc and Egyptian General Petroleum Corp., the National Oil Company of Egypt. Works will be carried out in various locations in the Morgan field, with an expected total pipelay of approximately 57 km (35 miles).
For its drilling segment, Sapura Drilling Asia Sdn Bhd (Sapura Drilling) has secured two new contracts. The first contract is from ExxonMobil Exploration and Production Malaysia Inc. for the provision of its tender assist drilling rig, Sapura T-9. The scope comprises the provision of barge tender assisted drilling rig services for a period of three years at the Tabu field, offshore Peninsular Malaysia. Sapura Drilling has also been awarded a contract extension by Petronas Carigali Sdn Bhd for the provision of semi tender assisted drilling rig, Sapura Berani. The contract entails the drilling of nine wells at the Sumandak, Erb West and Dulang facilities, offshore Sabah and Peninsular Malaysia.
In Indonesia, Sapura Offshore, in a joint venture with PT Timas Suplindo, has won a contract from Eni East Sepinggan Ltd., a subsidiary of multinational oil company Eni SpA The contract is for engineering, procurement, construction and installation works of two 16-inch diameter offshore rigid pipelines from the Jangkrik facility to a future manifold near Merakes drilling centers. Works will be carried out at water depths of between 70 m to 1,400 m. The total length of the pipeline system is approximately 95 km. The scope of work includes design, fabrication and offshore installation of foreseen structures, deepwater pipeline end terminations (PLETs) and in-line tee (ILT) systems for the East Sepinggan Block, East Kalimantan, Indonesia.
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Egypt expects investments of at least $750 million to $800 million in the first stage of exploration in the 12 concessions, Petroleum Minister Tarek El Molla said during a press conference.
The company also said it expects to generate substantial free cash flow in 2018, allowing it to initiate a dividend in the first-quarter of 2019.