SapuraKencana bags RM1.0b worth of contracts

by **Cals** Fri 16 May 2014, 02:19

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Thursday, 15 May 2014 19:52

KUALA LUMPUR (May 15): SapuraKencana Petroleum Bhd announced it has been awarded RM1 billion (US$312 million) worth of contracts, via its subsidiaries across its different divisions.

For its drilling division, wholly-owned subsidiary SapuraKencana Drilling Holdings Ltd, has been awarded a contract for the provision of offshore drilling rig - Tender Assist Drilling Rig “SKD T-20” - and services by CNR International (Cote d’Ivoire) S.A.R.L (CNRI).

“The CNRI contract comprises the provision of SKD T-20 for wells in the Espoir Field in Block CI-26 offshore Côte d'Ivoire. The drilling programme includes drilling, side-tracking, completion and other associated works, where applicable,” said the group.

The contract has a primary term of ten firm wells to be completed in not less than 365 days, followed by four single well options to be exercised at CNRI’s discretion.

Besides that, the group won three other contracts for its offshore construction and subsea services division.

Its wholly-owned subsidiary TL Offshore Sdn Bhd has executed a charter party agreement with Hereema Marine Contractors Nederland SE (HMC), for the provision of a command installation vessel “SK1200” for the Arkutun-Dagu Project in Sakhalin, Russia.

“The charter shall be for a firm period of 55 days and HMC has an option of 15 daily extensions,” said SapuraKencana.

TL Offshore has also been awarded a subcontract for the provision of transportation and installation works in connection with the British Gas Exploration & Production India Limited's Mukta B Platform and Pipeline Project by Larsen & Toubro Ltd through L&T Sapura Offshore Private Limited.

L&T Sapura Offshore is an Indian joint venture (JV) company between L&T and Nautical Power Pte Ltd, a wholly-owned subsidiary of SapuraKencana.

Meanwhile, SapuraAcergy Sdn Bhd, a 50:50 JV between SapuraKencana and Subsea 7 S.A., has been awarded a contract for the provision of subsea services for the Maharaja Lela South Project by TOTAL E&P Borneo B.V.

The contract is for a duration of approximately 20 months.

For its fabrication, hook-up and commissioning division, its wholly-owned subsidiary Kencana HL Sdn Bhd was awarded a contract for the provision of detailed engineering, procurement, construction, and commissioning for the Layang Development Project by JX Nippon Oil & Gas Exploration (Malaysia) Limited.

The project is for a period of two years and is expected to be completed by 2Q16.

The group said that the contracts “are expected to contribute positively towards the earnings of SapuraKencana Group for the financial year ending 31 January 2015 and the financial periods thereafter during the above contracts period, respectively."