Malaysia's Sapura Wins Work, Narrows Losses
Malaysia’s Sapura Energy has landed contracts for oil and gas work in Brunei, Malaysia and Thailand valued at ringgits 774mn ($185mn). The services group has secured three new contract and two contract extensions, bringing its total work orders this year to ringgits 3.1bn, it said in a statement on September 27.
The company's Sapura Fabrication subsidiary has secured a contract from Brunei Shell Petroleum for engineering, procurement, construction and installation (EPCI) services at the Salman oil and gas project in Brunei. The contract’s scope includes both Salman greenfield and Egret East greenfield work.
The Salman greenfield portion of the contract involves EPCI work and support for the hook-up, pre-commissioning and commissioning of a wellhead platform and substructures, pipelines and umbilicals, a water and chemical injection module, as well as a construction yard upgrade. The Egret East greenfield scope consists of front-end engineering design (Feed) services with an optional EPCI scope for wellhead platforms, substructures and pipelines.
Sapura Fabrication also received a contract in Malaysia from state-owned Petronas for the procurement, construction, hook-up and commissioning, as well as start-up works, for the BNJTK BN-84 well tie-in for Bardegg-2 and the Baronia enhanced oil recovery project. Sapura’s drilling unit Sapura Drilling Asia has also been hired by Thai state-run PPT Exploration & Production to supply its tender-assist Sapura T-17 drilling rig for work at the Bongkot gas field in the Gulf of Thailand.
In addition, Sapura Drilling Asia secured a contract extension from Petronas for the use of its Sapura Berani semi-submersible to drill five extra wells at Erb West, off Sabah, and the Dulang facilities, off Peninsular Malaysia. Sapura Drilling also got a one-year contract extension from BSP for the Sapura Pelaut semi-submersible.
Sapura reported its financial results on September 27 for the three months ending July 31, in which it narrowed its net losses to ringgits 116.3mn, from ringgits 199.2mn a year earlier. Revenues soared 87%, arriving at ringgits 1.9bn, on the back of improved performance by its engineering and construction and drilling segments.
“Our top line growth has been encouraging and we are ramping up our operations to execute new contracts and serve new markets as well as new customers,” Sapura CEO Sri Shahril Shamsuddin said. “This growth momentum is expected to improve our bottom line as we gradually progress the projects to the next stages.”