Sapura Energy Berhad ("Sapura Energy" or the “Company") is pleased to announce that its wholly-owned subsidiaries and joint venture have been awarded contracts/contract extensions with a combined value of approximately RM615.0 million.
Details of each of these contracts/contract extensions (collectively referred to as “Contracts”) are as summarised below:
Engineering & Construction:
Malaysia
AWARD OF CONTRACT FOR THE PROVISION OF ENGINEERING, PROCUREMENT, CONSTRUCTION, COMMISSIONING PLUS INSTALLATION (EPCC+I) FOR FULL FIELD DEVELOPMENT PHASE 3 FACILITIES, NORTH MALAY BASIN
Sapura Fabrication Sdn Bhd (“SFSB”) has been awarded with a contract for the provision of Engineering, Procurement, Construction, Commissioning Plus Installation (EPCC+I) for Full Field Development Phase 3 Facilities, North Malay Basin (NMB) (“Contract”) by Hess Exploration And Production Malaysia B.V (“Hess”) under the PETRONAS Frame Agreement – Package B.
The Contract scope of work comprises engineering, procurement, construction and commissioning of the following: -
A) Bergading Wellhead Platform B (“Bergading WHPB”).
B) 12’ diameter corrosion-resistant alloy rigid trunk line (“Pipeline”) approximately 7.3 km from Bergading WHPB to Bergading Central Processing Platform (“Bergading CPP”).
C) Subsea Power and Telecommunication link (“Subsea Umbilical”) approximately 7.3 km from Bergading CPP to Bergading WHPB and Topsides Umbilical Termination Unit (TUTU).
D) Pipeline tie-ins, effective telecommunications, control and power (collectively “CPP Brownfield Works”) for Brownfield modification works at the Bergading CPP.
The scope of offshore transportation and installation work is optional and is not inclusive in the award and Hess will notify SFSB in writing if this option is exercised.
The works are expected to be completed by Q2 FY2022.
Mozambique
AWARD OF CONTRACT FOR PROVISION OF SUBSEA INSTALLATION VESSEL FROM MOZAMBIQUE ROVUMA VENTURE S.p.A.
Sapura Energy DMCC has been awarded with a contract for the provision of Subsea Installation Vessel by Mozambique Rovuma Venture S.p.A.
The Contract scope of work includes the transportation and installation of Christmas Trees in deep water offshore Mozambique of the Area 4 Rovuma Basin.
The works are expected to be completed by Q4 FY2021.
Brazil
EXTENSION OF CONTRACT FOR THE CHARTER AND OPERATIONS OF PIPE LAYING VESSELS FROM PETROLEO BRASILEIRO S.A. (“PETROBRAS”)
Further to the announcement dated 27 June 2013 pursuant to the award of contracts for the charter and operation of three (3) units of Pipe Laying Support Vessels from Petrobras, Sapura Navegacao Maritama S.A. has been awarded an extension of charter for one of the vessels, Sapura Topazio, in the said contract by Petrobras in Brazil.
The Contract will commence in Q4 FY2020 and scheduled to end in Q4 FY2021.
Drilling:
Malaysia
EXERCISE OF CONTRACT EXTENSION FOR SEMI-SUBMERSIBLE TENDER ASSIST DRILLING RIG SAPURA ESPERANZA WITH SARAWAK SHELL BERHAD / SABAH SHELL PETROLEUM COMPANY LIMITED.
Sapura Drilling Asia Sdn. Bhd. has accepted the exercise of its contract extension (“Contract Extension”) with Sarawak Shell Berhad / Sabah Shell Petroleum Company Limited (“Shell”) for the provision of its Semi-Submersible Tender Assist Drilling Rig, Sapura Esperanza.
The Contract Extension entails the drilling of six (6) wells for Malikai Phase 2 drilling campaign, in offshore Sabah.
The work related to the 6 wells is expected to commence in Q3 FY2021.
FINANCIAL EFFECTS
The Contracts announced herein will have no effect on the issued capital of the Company and are expected to contribute positively towards the earnings of Sapura Energy Group (“the Group”) for the financial year ending 31 January 2020 and the financial periods thereafter within the Contracts period.
RISK FACTORS
Risk factors affecting the Contracts include execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic and regulatory conditions. Notwithstanding, the Group has established a successful track record undertaking similar projects.
DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS
None of the Directors and/or major shareholders of the Company and/or persons connected with them have any direct or indirect interest in the award and extension of the Contracts herein.
DIRECTORS’ STATEMENT
The Board is of the opinion that the acceptance of the Contracts herein is in the best interest of the Company.
This announcement is dated 5 December 2019.