Announcements


Date: 07 January 2019

OTHERS SAPURA ENERGY BERHAD - AWARD OF CONTRACTS


Type Announcement
Subject OTHERS
Description SAPURA ENERGY BERHAD - AWARD OF CONTRACTS

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/contract extension with a combined value of approximately RM760 million.

Details of each of these contracts/contract extension (collectively referred to as "Contracts") are as summarised below:

 

For Drilling:

 

Angola

 

Provision of a Semi-Submersible Tender Assisted Drilling Rig, "Sapura Jaya", and Drilling Services for Cabinda Gulf Oil Company Limited, a subsidiary of Chevron Corporation

Sapura Energy Angola LDA has been awarded a contract for the provision of a semi-submersible tender assisted drilling rig, "Sapura Jaya", and drilling services ("Contract") by Cabinda Gulf Oil Company Limited, a subsidiary of Chevron Corporation.

The scope of the Contract comprises the provision of a semi-submersible tender assisted drilling rig for a period of two (2) years commencing in the Q2 FY2020 with a further two (2) possible extensions of six months in the Angolan waters.

 

Malaysia

1.  Provision of a Semi-Submersible Tender Assisted Drilling Rig "Sapura Esperanza" with Sarawak Shell Berhad / Sabah Shell Petroleum Company Limited

Sapura Drilling Asia Sdn Bhd has accepted the exercise of the options ("Options") of its contract extension ("Contract Extension") with Sarawak Shell Berhad / Sabah Shell Petroleum Company Limited ("Shell") for the provision of its Semi-Submersible Tender Assisted Drilling Rig "Sapura Esperanza".

These Options entail the drilling of three (3) wells including one (1) Shallow Clastic well and two (2) wells Plug and Abandonment for E11 upon completion of current F14 Phase 2a drilling campaign, in offshore Sarawak. The work related to the 3 wells is expected to be completed by Q1 FY2020.

 

2. Provision of Semi-Tender Assisted Drilling Rig "Sapura Berani" ("Contract") with PETRONAS Carigali Sdn Bhd ("PETRONAS")

Sapura Drilling Asia Sdn Bhd has been awarded a letter of contract extension by PETRONAS for the provision of Semi-Tender Assisted Drilling Rig "Sapura Berani".

The scope of the Contract entails the drilling of two (2) wells at Sumandak facility, offshore Sabah. The work is expected to be completed by Q1 FY2020.

 

For Engineering & Construction:

 

Malaysia

1.  Provision for Engineering, Procurement, Construction and Commissioning (EPCC) of PFLNG 1 Relocation and Tie In  

Sapura Fabrication Sdn Bhd has been awarded a contract to undertake the Provision for Engineering, Procurement, Construction and Commissioning (EPCC) of PFLNG 1 Relocation and Tie In ("Contract") by PETRONAS FLOATING LNG 1 (L) LTD.

The Contract scope of work comprises engineering, procurement, construction, onshore testing, pre-commissioning and offshore hook-up and commissioning for the relocation and tie in of PFLNG 1 from current location at Kumang Cluster, offshore Sarawak.

The Contract is expected to be completed by Q3 FY2020.

 

2. Provision of Engineering, Procurement, Construction, Commissioning Plus Installation ("EPCC+I") for Full Field Development ("FFD") Phase 2 Facilities, North Malay Basin

Sapura Fabrication Sdn Bhd ("Contractor") is required by Hess Exploration and Production Malaysia B.V. ("Hess") to perform the additional scope for offshore transportation and installation under the existing contract for the Provision of Engineering, Procurement, Construction, Commissioning Plus Installation (EPCC+I) for FFD Phase 2 Facilities, North Malay Basin ("Contract") that was announced on 5 February 2018. 

The Contract is expected to be completed by Q2 FY2020.

 

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 2019 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 7 January 2019



 


ATTACHMENT

- MEDIA RELEASE_SAPURA ENERGY SECURES RM760 MILLION IN CONTRACT WINS ACROSS SERVICES SEGMENT.pdf

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