SK Petro bags jobs worth RM1.58b

by **Cals** Fri 05 Feb 2016, 08:26

LATEST NEWS, CORPORATE

[size=28]SK Petro bags jobs worth RM1.58b

By Supriya Surendran / theedgemarkets.com | February 4, 2016 : 11:10 PM MYT

KUALA LUMPUR (Feb 4): SapuraKencana Petroleum Bhd (SK Petro) has bagged jobs consisting of contracts and contracts extensions for engineering, construction and drilling services, with a combined value of approximately US$382 million (RM1.58 billion).

In a filing with Bursa Malaysia today, SK Petro said the contracts were won by its wholly-owned subsidiary companies and jointly-controlled entities within the group.

Among the contracts won were by SapuraKencana GE Oil & Gas Services Sdn Bhd, which is a joint venture (JV) between SapuraKencana Services Shd Bhd and GE Power Systems (Malaysia) Sdn Bhd.

The JV company was awarded a contract by Murphy Sarawak Oil Company Ltd for comprehensive maintenance of GE-supplied turbomachinery equipment, under a long-term service agreement.

This comprises the provision of maintenance services for GE-supplied gas turbines and centrifugal compressors, and carries a contract period of approximately 10 years.

Similarly, SapuraKencana GE Oil &Gas Services was also awarded a contract by Petronas Floating LNG1 (L) Ltd for comprehensive maintenance of GE-supplied turbomachinery equipment, under a long-term service agreement.

This comprises the provision of maintenance services for GE-supplied aeroderivative gas turbines, centrifugal compressors and electric generators and electric motors, and has a contract period of 10 years, with an option to extend for an additional period of five years.

As for its drilling services, SK Petro’s wholly-owned subsidiary SapuraKencana Drilling Jaya Ltd has been granted an extension to its contract with BP Trinidad & Tobago LLC, for the provision of its Semi-submersible Tender Assist Drilling Rig “SKD Jaya”.

BP has extended the use of the SKD Jaya for an additional one well in its development drilling campaign offshore Trinidad and Tobago, and is expected to remain on contract until April 2016.

The contracts are expected to contribute positively towards the earnings of SK Petro, principally for the financial year ending Jan 31, 2017; and for contracts extending beyond Jan 31, 2017, during their respective contract periods for the financial period(s) thereafter.

SK Petro shares closed the day up 10 sen or 5.71% to RM1.85 today, for a market capitalisation of RM11.09 billion.
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