Highlight SapuraKencana’s units awarded 3 contracts and a contract extension worth RM2.3 billion

by **Cals** Tue 17 Jun 2014, 01:21

Highlight SapuraKencana’s units awarded 3 contracts and a contract extension worth RM2.3 billion

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 16 June 2014 18:57

KUALA LUMPUR (June 16): SapuraKencana Petroleum Berhad announced that its wholly-owned drilling subsidiaries have been awarded three new contracts and a contract extension.

“In total, the contracts and contract extension are valued at circa USD700 million (RM2.3 billion),” said the company in a filing with Bursa Malaysia.

Elaborating, SapuraKencana said its wholly-owned Petcon (Malaysia) Sdn Bhd had been awarded two contracts by Petronas Carigali Sdn Bhd for the provision of tender assist drilling rigs (SKD T-9 and SKD T-10) for Petronas Carigali's development drilling campaign offshore Malaysia.

The contract for SKD T-9 is for five years with an option to extend for a further two years. This contract shall be effective from July 2014 to June 2019.

The contract for SKD T-10 is for three years with an option to extend for a further two years. This contract shall be effective from August 2014 to July 2017.

SapuraKencana also said SapuraKencana Drilling Asia Limited, its unit incorporated in Hong Kong, had been awarded a contract by Chevron Thailand Exploration And Production Limited for the provision of offshore drilling rig and services by its tender assist drilling rig “SKD T-18”. Chevron intends to utilise SKD T-18 for its offshore development drilling campaign in Thailand.

The contract for SKD T-18 is for five years and shall be effective from June 2014 to May 2019.

On contract extension, SapuraKencana said Seadrill Jaya Ltd, its unit incorporated in Bermuda, has accepted an extension to its contract with BP Trinidad & Tobago LLC for the provision of offshore drilling rig and services by its tender assist drilling rig “SKD Jaya”.

The extension of the contract for SKD Jaya is for one year and shall be effective from August 2014 to July 2015.

“The contracts and contract extension 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 contracts and contract extension periods,” said the filing by SapuraKencana.