SapuraKencana Petroleum Bhd has clinched three new contracts and a contract extension worth a total of US$700mil (RM2.3bil) from Petronas Carigali Sdn Bhd, Chevron Thailand Exploration and Production Ltd and BP Trinidad & Tobago LLC.
“These latest, big business wins, which come on top of about RM2.5bil in new contracts and extensions already won so far in 2014, will contribute positively to SapuraKencana’s future earnings,” said SapuraKencana president and group CEO Tan Sri Shahril Shamsuddin.
He said the new businesses further strengthened SapuraKencana’s order book to RM27.4bil and signified the sustained faith and confidence their clients had in the group’s capabilities and ability to deliver.
“In the past one year that the group’s SapuraKencana Drilling division has been operating within the group, it has successfully and on a sustained basis delivered a steady stream of new businesses for the group.
“We expect to see this grow further,” Shahril said.
In a filing with Bursa Malaysia, SapuraKencana said the first contract was awarded to SapuraKencana’s unit Petcon (M) Sdn Bhd from Petronas Carigali for the provision of its tender assist drilling rigs, namely SKD T-9 and SKD T-10, which Petronas Carigali intends to use for its development drilling campaign offshore Malaysia.
“The contract for SKD T-9 is for five years with an option to extend for a further two years. This contract shall be effective from July 2014 to June 2019,” SapuraKencana said.
It added that the contract for SKD T-10 was for three years with an option to extend for a further two years.
As for the second contract, SapuraKencana’s unit SapuraKencana Drilling Asia Ltd secured the provision of offshore drilling rig and services by its tender assist drilling rig SKD T-18 from Chevron Thailand Exploration And Production Ltd.
Chevron intends to utilise SKD T-18 for its offshore development drilling campaign in Thailand. The contract for SKD T-18 is for five years
The company did not furnish any breakdown of the value of the contracts.
Meanwhile, SapuraKencana’s Bermuda-based unit Seadrill Jaya Ltd, has accepted an extension to its contract with BP Trinidad & Tobago LLC (BP T&T) for the provision of offshore drilling rig and services by its tender assist drilling rig SKD Jaya, which BP T&T intends to use for its offshore development drilling campaign in Trinidad & Tobago.
“The extension of the contract for SKD Jaya is for one year, effective from August 2014 to July 2015.”
Analysts said SapuraKencana had been on a roll of late securing various contracts boosting its orderbook.
Analysts, who are positive on SapuraKencana, said the company’s outlook remained positive with its earnings growth backed by a strong order book momentum and recurring income from upstream assets.
Just last week, SapuraKencana’s wholly-owned subsidiary, SapuraKencana Energy Sarawak Inc, made four significant discoveries of non-associated natural gas in the SK408 production sharing contract (PSC) area, offshore Sarawak, Malaysia.
These are the first four wells out of total 10 wells commitment in the SK408 PSC.
SapuraKencana is the operator with a 40% working interest partnering Petronas-Carigali Sdn Bhd with 30% stake and Sarawak Shell Bhd with 30% stake in the SK408 PSC.
“These latest, big business wins, which come on top of about RM2.5bil in new contracts and extensions already won so far in 2014, will contribute positively to SapuraKencana’s future earnings,” said SapuraKencana president and group CEO Tan Sri Shahril Shamsuddin.
He said the new businesses further strengthened SapuraKencana’s order book to RM27.4bil and signified the sustained faith and confidence their clients had in the group’s capabilities and ability to deliver.
“In the past one year that the group’s SapuraKencana Drilling division has been operating within the group, it has successfully and on a sustained basis delivered a steady stream of new businesses for the group.
“We expect to see this grow further,” Shahril said.
In a filing with Bursa Malaysia, SapuraKencana said the first contract was awarded to SapuraKencana’s unit Petcon (M) Sdn Bhd from Petronas Carigali for the provision of its tender assist drilling rigs, namely SKD T-9 and SKD T-10, which Petronas Carigali intends to use for its development drilling campaign offshore Malaysia.
“The contract for SKD T-9 is for five years with an option to extend for a further two years. This contract shall be effective from July 2014 to June 2019,” SapuraKencana said.
It added that the contract for SKD T-10 was for three years with an option to extend for a further two years.
As for the second contract, SapuraKencana’s unit SapuraKencana Drilling Asia Ltd secured the provision of offshore drilling rig and services by its tender assist drilling rig SKD T-18 from Chevron Thailand Exploration And Production Ltd.
Chevron intends to utilise SKD T-18 for its offshore development drilling campaign in Thailand. The contract for SKD T-18 is for five years
The company did not furnish any breakdown of the value of the contracts.
Meanwhile, SapuraKencana’s Bermuda-based unit Seadrill Jaya Ltd, has accepted an extension to its contract with BP Trinidad & Tobago LLC (BP T&T) for the provision of offshore drilling rig and services by its tender assist drilling rig SKD Jaya, which BP T&T intends to use for its offshore development drilling campaign in Trinidad & Tobago.
“The extension of the contract for SKD Jaya is for one year, effective from August 2014 to July 2015.”
Analysts said SapuraKencana had been on a roll of late securing various contracts boosting its orderbook.
Analysts, who are positive on SapuraKencana, said the company’s outlook remained positive with its earnings growth backed by a strong order book momentum and recurring income from upstream assets.
Just last week, SapuraKencana’s wholly-owned subsidiary, SapuraKencana Energy Sarawak Inc, made four significant discoveries of non-associated natural gas in the SK408 production sharing contract (PSC) area, offshore Sarawak, Malaysia.
These are the first four wells out of total 10 wells commitment in the SK408 PSC.
SapuraKencana is the operator with a 40% working interest partnering Petronas-Carigali Sdn Bhd with 30% stake and Sarawak Shell Bhd with 30% stake in the SK408 PSC.