Sapura Energy secures RM2.7b contracts for 2Q23

SAPURA Energy Bhd says that its drilling and engineering & construction (E&C) business segments, through its wholly owned subsidiaries and joint venture (JV), have secured six major contract wins in Asia-Pacific and Atlantic region, with a combined value of RM2.7 billion, of which RM176 million is contributed by its JV company.

The firm said that these awards are a testament to Sapura Energy’s Reset Plan and also signal the confidence from the group’s new and existing clients.

“Our drilling business segment continues to secure new contracts under the current market conditions. The segment is expected to increase its asset utilisation rate, from the current eight rigs in operations, to eleven rigs by the end of financial year 2023,” Sapura Energy said in a statement today.

Sapura Drilling Asia Ltd 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 Co Ltd in Thailand.

These new contracts from PTTEP Energy Development will commence in the third quarter (3Q) of calendar year 2022. Sapura Drilling Asia also obtained an award for a new drilling campaign, offshore Malaysia.

The group 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 and its consortium partner, Sapura Navegação Marítima SA. The EPCI SURF award is for the Atlanta’s Full Field Development in the Santos Basin, offshore Brazil.

The contract scope of work includes the supply of a pipelay support vessel; installation of new subsea manifolds, subsea pumps, flexibles, jumpers and umbilicals for three new wells; disconnecting the existing Early Production System; and re-routing existing flexibles and umbilicals to the floating production system Atlanta.

The contract has commenced in the 1Q of calendar year 2022 for a duration of 33 months and is expecting to achieve its first oil in 2024.

Through its subsidiary Sapura Offshore Sdn Bhd, the group’s E&C segment has been awarded a transportation and installation contract by Hess Exploration and Production Malaysia BV.

The contract scope of work includes transportation and installation of a 51km pipeline, three wellhead platforms, two flexible pipelines and subsea facilities in the North Malay Basin development.

According to Sapura Energy, the contract has commenced in 2Q calendar year 2022 for a duration of eight months excluding warranty period.

In an exchange filing last week, Sapura Energy also disclosed that the High Court of Kuala Lumpur has granted the group a nine-month extension on the restraining order related to its proposed scheme of arrangement, allowing the group to focus on project execution whilst working out an amicable solution with its creditors. — TMR