SapuraCrest buys Clough's marine-based ops

KUALA LUMPUR: SapuraCrest Petroleum Bhd has signed a conditional agreement to acquire Clough Ltd's marine construction and offshore engineering operations in Australia, UK and US for A$127 million (A$1=RM3.08).

In a statement today, SapuraCrest said besides providing a global platform, the acquisition also provided an opportunity for it to expand its activities in subsea and deepwater segments.

"The wider capabilities, network and asset base following the acquisition will strategically position the company to tap opportunities to expand its regional footprint in the key offshore markets of Indonesia, Vietnam, Thailand, China, Australia and India, as well as Brazil," it said.

SapuraCrest said the Malaysian market, which currently accounted for a substantial portion of its order book, would continue to be a priority given the increasing job prospects.

Its executive vice-chairman/president, Datuk Shahril Shamsuddin, said the acquisition was timely given the solid prospects offered by key offshore markets over the next five years as well as the growing potential of upstream petroleum activities.

"Clough's marine construction business will undoubtedly complement the group's existing assets and services, which are already well-poised to take advantage of the anticipated uptrend in the sector.

"What's more, we will have strategic access to a team of highly-qualified professionals as well as key customer relationships in Australia thanks to Clough's experience and reputation in onshore and offshore engineering, procurement and construction activities dating back 90-odd years," he said.

Shahril said the Australian market was already a familiar one to
SapuraCrest's installation of pipelines and facilities division and its flagship vessel, Sapura 3000.

"The vessel has achieved an impressive track record which included the recently-completed RM512 million Devil Creek Development Project involving transportation and installation of offshore facilities," he said.

He said Sapura 3000 would soon be providing offshore transportation and construction activities worth RM482 million for the Montara Development Project and is anticipating to secure jobs for the Gorgon offshore natural gas project in Western Australia slated to begin in 2013.

"This comes close on the heels of the group submitting tenders for offshore Brazilian jobs with the country's oil major Petrobras," he said. - Bernama