INTRODUCTION
The Board of Directors of Sapura Energy Berhad ("Sapura Energy" or the "Company") ("Board") is pleased to announce that its wholly-owned subsidiaries have been awarded contracts/subcontract/contract extension with a combined value of approximately RM815 million.
Details of each of these contracts/subcontract/contract extension (collectively referred to as "Contracts") are as summarised below:
For Engineering & Construction:
Malaysia
Provision of Pan Malaysia Maintenance, Construction and Modification Contract for ExxonMobil Exploration and Production Malaysia Inc ("EMEPMI")
Sapura Fabrication Sdn Bhd has been awarded a contract to undertake the Provision of Pan Malaysia Maintenance, Construction and Modification Contract for EMEPMI.
The contract scope of work comprises procurement, onshore pre-fabrication works, offshore maintenance, construction and modification works related to topside maintenance, workover preparation and facilities improvement projects for EMEPMI offshore facilities in Peninsular Malaysia water.
The contract is a call-out contract where works will be carried out according to work orders issued by EMEPMI based on contract unit rates and prices. The duration of the primary contract will be for a period of five years, expiring in July 2023, with an option for a one-year extension at the discretion of EMEPMI.
Australia
Offshore Installation Works for East Spar Intelligent Pigging and Removal Project for Quadrant Energy
Normand Sapura Pty Ltd has been awarded a contract from Quadrant Energy Australia Ltd to undertake an Offshore Installation Works for its East Spar Intelligent Pigging and Removal Project.
The contract scope of work involves the intelligent pigging of the East Spar subsea pipeline from East Spar pipeline end manifold (PLEM) up to the onshore processing facilities in Varanus Island, off the North West coast of Western Australia in Commonwealth waters. It also involves the recovery of all subsea infrastructures from three subsea wells (ES1, ES3 & ES6) consisting of subsea heat exchangers, tie-in spools, flexible flowlines and associated control umbilicals for dismantling and disposal in accordance with regulations. The contract will be executed by Sapura Constructor, a DP2 Subsea Construction & Saturation Diving Vessel.
The works are expected to be completed by Q4 FY2019.
Nigeria
Provision of Construction Engineering and Offshore Construction of 16" Southern SWAMP Sales Gas Evacuation Pipeline Project in the Delta Region of Nigeria for Saidel Limited
Sapura Offshore Sdn Bhd has been awarded a subcontract by Saidel Limited for the provision of Construction Engineering and Offshore Construction of a 16" Southern SWAMP Sales Gas Evacuation Pipeline Project in the Delta Region of Nigeria ("Subcontract") operated by Shell Petroleum Development Company of Nigeria.
The scope of work comprises 16" x 18.4 kilometres pipeline from Onshore Target Box to EA Riser Platform - A including 1.62 kilometres beach pull, three sections tie-in spool at EA Riser Platform - A and two concrete mattress installation at crossing location offshore Nigeria.
The works are expected to be completed by Q4 FY2019.
For Drilling
Brunei
Extension of Contract for the provision of a Semi-Submersible Tender Assist Drilling Rig "Sapura Pelaut" for Brunei Shell Petroleum
Sapura Drilling Sdn Bhd has been awarded a contract extension for the provision of a semi-submersible tender assisted drilling rig, "Sapura Pelaut", and drilling services ("Contract Extension") by Brunei Shell Petroleum Co. Sdn. Bhd.
The scope of the Contract Extension comprises the provision of a semi-submersible tender assisted drilling rig for a firm period of one (1) year commencing from Q1 FY2020 with a further one (1) year option in Bruneian waters.
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 principally for the financial year ending 31 January 2019 and, for Contracts that extend beyond 31 January 2019, the financial period(s) thereafter within the duration of the Contracts and the extension periods if the extension options are exercised.
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 24 September 2018.
