SapuraKencana to pursue more risk service contracts

by **Cals** Thu 27 Feb 2014, 10:10

SapuraKencana to pursue more risk service contracts
Business & Markets 2014
Written by Fatin Rasyiqah Mustaza of theedgemalaysia.com
Thursday, 27 February 2014 10:04

KUALA LUMPUR: SapuraKencana Petroleum Bhd, which has been awarded the country’s first risk service contract (RSC) to develop marginal oilfields, is still on the lookout for more similar contracts locally and abroad, said president and group chief executive officer Tan Sri Shahril Shamsuddin.

“RSC is a line of business that we will continue to pursue in our (subsidiary) SapuraKencana Energy Inc. We are looking at RSCs in the region and Malaysia,” he told the media on the sidelines of the launch of the second edition of The Oil & Gas year Malaysia 2014.

However, Shahril did not elaborate on the ventures.

Currently, SapuraKencana’s domestic operations contribute about 60% to its business. “Maybe we will start to see a reverse this year,” he said, adding that its earnings base will see a shift with overseas operations contributing a bigger share.

“2014 will be a year of executing the order book that we have already garnered over the years and we will continue to bid for more projects globally,” said Shahril, adding that SapuraKencana has a total order book of US$7 billion (RM22.9 billion) locally and internationally.

He added that the company will start executing its second deepwater flexible pipe-laying support vessel (PLSV) for Brazil’s Petroleo Brasileiro SA (Petrobras) in June. This will be done through its partnership with Seadrill Ltd.

The PLSV mentioned is the second of six vessels from two contracts worth US$4.1 billion from Petrobras. The first vessel was launched in October last year.

“We are also bidding very actively in Africa for our drilling business and we will continue to develop the Mexican market for our heavy lift vessels that we launched in China last week,” said Shahril.

He also said: “I am honored by this award, but more importantly I receive this award on behalf of all staff because we got here due to their hard work and commitment over many years.

“They have executed work with professionalism and were able to apply the knowledge that they have in a safe manner over the years.”

The latest edition of The Oil & Gas Year Malaysia 2014 presents an in-depth look at the domestic oilfield services sector and the nation’s goal of becoming Asia-Pacific’s regional hub for oilfield services by 2017.

It is published by Wildcat International and produced in partnership with the Malaysian Gas Association, the Malaysian Oil & Gas Service Council and PricewaterhouseCoopers.
In conjunction with the launch, awards were presented. Shahril received the Man of The Year award, while UMW Oil and Gas Bhd president Rohaizad Darus received the award for initial public offering of the year.

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From left: Syed Feizal, Jamalludin, Rohaizad, Shahril, The Oil & Gas Year Malaysia 2014 deputy chief executive officer Asli Konyali and regional director Jack Miller.

The winners of the award for the engineering and construction project of the year are the joint venture partners, Jamalludin Obeng, general manager of commercial and business development, offshore business unit from Malaysia Marine and Heavy Engineering Holdings Bhd, and Syed Feizal Syed Mohammad, senior vice-president of Malaysia and Brunei for Technip Geoproduction (M) Sdn Bhd.

The duo were recognised for the tension leg platform for Malaysia’s third deepwater development, Malikai deepwater field by Sabah Shell Petroleum Co Ltd.

This article first appeared in The Edge Financial Daily, on February 27, 2014.