Update SapuraKencana wins RM8.6b Petrobras award for 3 PLSVs

by **Cals** Thu 27 Jun 2013, 22:44

[b style="color: rgb(255, 0, 0); font-weight: bold;"]Update[/b] SapuraKencana wins RM8.6b Petrobras award for 3 PLSVs

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Thursday, 27 June 2013 18:04

KUALA LUMPUR (June 27): Leading integrated oil and gas services provider, SapuraKENCANA PETROLEUM BHD [] (SKPB), has won an award worth US$2.7 billion (about RM8.6 billion) from Brazil’s Petroleo Brasileiro (Petrobras) to build, charter and operate three more deepwater flexible pipe laying support vessels (PLSVs) for eight years.

The new contract was awarded to SapuraKencana’s associate company, Sapura Nevegacao Maritima S.A. Brazil (SNM), said a statement from SKPB.

Petrobras, an integrated energy company, is a publicly traded corporation controlled by the government of Brazil. It has presence in 28 countries.

Under the terms of the latest award, the three new PLSVs will be built outside Brazil. And SNM has been contracted to charter and operate the new vessels for a period of 8 years, with extension option for an additional 8 years.

The PLSVs are due to be delivered for operation from around the second quarter of 2016, and revenue from the award is expected to be generated from then, SapuraKencana said.

The award is expected to contribute positively to the group’s net assets and future earnings, said the company.

In November 2011, SapuraKencana was awarded its maiden Petrobras contract worth US$1.4 billion for the building, charter and operation of 3 similar PLSVs.

Two of those 3 vessels are being built outside Brazil and revenue from the vessels is expected to be generated by the fourth quarter of 2014, according to the company.

Commenting on the latest award, SapuraKencana’s president and group CEO Tan Sri Shahril Shamsuddin said:

“This expanded new business overseas, coupled with anticipation of more work in Malaysia arising from the ongoing quest to extract more hydrocarbons deeper, as well as new opportunities opening up in West Africa, China, India and Mexico, augurs well for SapuraKencana in the near to medium term.”