Friday, 28 February 2014

SapuraKencana eyes US$7b deals

SAPURAKENCANA Petroleum Bhd is looking at bidding for contracts worth US$7 billion (RM23.1 billion) locally and abroad.

At the same time, the integrated oil and gas services provider expects to secure more business from overseas this year.

Its president and group chief executive officer Tan Sri Shahril Shamsuddin expects the group to be doing about 60 per cent to 65 per cent of its business overseas.

"Last year, the ratio was 40 per cent overseas and 60 per cent domestic. Probably, this will start to reverse this year," he told reporters after receiving the "Man of the Year" award at the launch of The Oil and Gas Year Malaysia 2014 publication, here, yesterday.

Shahril said for this year, the group would implement projects in its order book and continue to bid for more projects globally. Its current order book stands at US$7 billion, both locally and abroad.

He said the company will start with Brazil in the second quarter of this year.

In September last year, SapuraKencana launched its pipe-laying support vessel (PLSV) called Sapura Diamente for expansion into Brazil's oil and gas sector.

The 550-tonne vessel is the first of a series of six fully integrated offshore vessels to be used to develop deepsea oilfields in Brazilian waters on behalf of Brazil's Petro-leo Brasileiro.

Shahril said the group is actively bidding for contracts in Africa for its drilling business and will continue to develop the Mexican market, with the acquisition of a new heavy lift vessel that was launched in China few weeks ago.

The recently-acquired assets of US-based Newfield Exploration Company in Malaysia will also strengthen SapuraKencana's business and operations domestically and globally.

Newfield's unit in Malaysia, known as SapuraKencana Energy Inc, will develop some of the fields within SapuraKencana's assets and continue to produce between 23,000 and 28,000 barrels of oil per day, he said.

Shahril, however, declined to comment on reports that Sapura-Kencana is in talks with another US independent player, Murphy Oil Corp, to acquire the latter's assets in Malaysia.

Murphy Oil is reported to be looking to hive off a 30 per cent stake in its oil and gas assets in Malaysia for US$2 billion to US$3 billion.

"I cannot confirm," he said, when asked whether the company is negotiating with Murphy Oil.

Shahril also said SapuraKencana will continue to pursue risk service contracts (RSCs) or marginal fields in Malaysia and the region.

It was awarded the first RSC licence by Petronas to co-develop Berantai marginal oil field, off-shore Terengganu, with UK's Petrofac.

Meanwhile, Shahril dedicated the "Man of the Year" award to SapuraKencana staff's hard work and commitment.

The Oil and Gas Year Malaysia 2014 is published by Wildcat International and produced in partnership with the Malaysian Gas association, the Malaysian Oil and Gas Service Council and PricewaterhouseCoopers.