Kencana Petroleum Bhd has secured a RM208 million contract for the fabrication of a substructure for the Kebabangan northern hub development project off the coast of Sabah.In an announcement to Bursa Malaysia yesterday, the country’s most profitable offshore fabricator said its unit Kencana HL Sdn Bhd had been awarded the project by Kebabangan Petroleum Operating Company (KPOC).
Petronas Carigali has a 40% stake in KPOC, while Shell Energy Asia Ltd has 30% and ConocoPhillips Sabah Gas Ltd has 30%.
“Under the contract, KHL is to undertake the construction engineering, procurement, fabrication, inspection, testing and commissioning, loadout and seafastening (EPC),” it said.
Year-to-date, Kencana has secured contracts of about RM539 million. Earlier this year, it had secured two contracts from UK-based Petrofac (M) Ltd, valued at RM115 million and RM216 million.
It had also secured a Petroliam Nasional Bhd contract worth an estimated US$800 million (RM2.39 billion) with SapuraCrest Petroleum Bhd and Petrofac in January this year. Kencana Energy has a 25% stake in the joint-operating agreement.
With regard to this latest contract win, Kencana said it was a one-off contract and was expected to be delivered to KPOC within 3Q12.
It added that the contract would start contributing positively to its bottom line from this fiscal year.
Kencana’s shares gained one sen to RM2.68 yesterday with 2.74 million shares traded.
On Monday, Sime Darby Bhd announced that its unit Sime Darby Engineering Sdn Bhd was awarded a RM1.15 billion contract to fabricate KBB topsides for the Kebabangan northern hub development project by KPOC. - Edge