Sapura Energy secures RM2.7 bil contracts in Asia-Pacific, Atlantic region

16 Jun 2022 10:15pm

Sapura Energy says its drilling business segment continues to secure new contracts under the current market conditions and the segment is expected to increase its asset utilisation rate

KUALA LUMPUR - Sapura Energy Bhd’s drilling and engineering and construction (E&C) business segments, through its wholly-owned subsidiaries and joint-venture, have secured six major contract wins in the Asia-Pacific and Atlantic region, with a combined value of RM2.7 billion.

In a filing with Bursa Malaysia, it said RM176 million from the combined value was contributed by its joint-venture company.

Sapura Energy said its drilling business segment continues to secure new contracts under the current market conditions and the segment is expected to increase its asset utilisation rate, from the current eight rigs in operation, to 11 rigs by the end of financial year 2023.

"Sapura Drilling Asia Ltd showcased its ability to deliver promises in Thailand when it was awarded with three new long-term contracts for its offshore tender-assist drilling rigs Sapura T-10, Sapura T-11 and Sapura T-12 from PTTEP Energy Development Company Ltd,” it said.

The group said these new contracts from PTTEP would commence in the third quarter of calendar year 2022.

"Sapura Drilling also obtained an award for a new drilling campaign offshore Malaysia,” it said.

For its E&C business segment, Sapura Energy said it has strengthened its presence in the Atlantic region with an engineering, procurement, construction and installation (EPCI) subsea umbilicals, risers and flowlines (SURF) contract award by Enauta Energia SA to Sapura Energy Do Brasil (SEDB) and its consortium partner, Sapura Navegacao Marítima SA (SNM).

It said the EPCI SURF award is for Atlanta’s full-field development in the Santos Basin, offshore Brazil.

The scope of the contract includes work on the supply of a pipelay support vessel, installation of new subsea manifolds, subsea pumps, flexibles, jumpers and umbilicals for three new wells and disconnecting the existing early production system.

"The contract has commenced in the first quarter of 2022 for a duration of 33 months and is expecting to achieve its first oil in 2024,” it said.

Other than that, it said the group’s E&C segment has been awarded a transportation and installation contract by Hess Exploration And Production Malaysia BV, through its subsidiary Sapura Offshore Sdn Bhd.

"The contract scope of work includes transportation and installation of a 51 km pipeline, three wellhead platforms, two flexible pipelines and subsea facilities in the North Malay Basin development,” it said, adding that the contract commenced in the second quarter of 2022 for eight months excluding the warranty period.- Bernama