Exciting news in returning the oil and gas industry after a period of lull, with Crude Oil Price hovering in the USD 65-70 producers are starting to invest again. This bodes well for supporting engineering players like Sapura Energy which has just bagged RM1.2 billion contract it for engineering and construction and operations and maintenance work.
The contracts wins through its subsidiary Sapura Offshore were from PTTEP Sarawak Oil Limited (PTTEP) and EnQuest Petroleum Production Malaysia Ltd (EnQuest) under the Pan Malaysia Transportation and Installation of Offshore Facilities 2021 campaign. The scope of work from PTTEP includes transportation and installation, engineering, survey, interfacing, topside installation and handover, removal of temporary structures, and other optional works.
As for the O&M business segment, the group through its subsidiary Sapura Fabrication secured contracts from EnQuest, as well as Sarawak Shell Berhad and Sabah Shell Petroleum Company Limited. The contract awarded by EnQuest is for the provision of maintenance, construction, and modification for its PM8 Extension Production Sharing Contract.
The contract scope of work comprises project management, fabrication, offshore maintenance, construction, and modification works with a duration is for one year. Whereas the award from SSB and SSPC is for the provision of topside major maintenance services works in various projects located in offshore Sabah and Sarawak. Both these contracts have have a issue work orders on call-off basis for actual work execution. As for the drilling Business Segment, Sapura Drilling Asia has been awarded two contracts from Petronas Carigali for its drilling activities offshore Malaysia. The award of the first contract is for the provision of tender-assist drilling rig services for a duration of two years with an option of a two-year extension, it be on a call-out basis, subject to rig availability and suitability with the client’s requirement.
In the second award, Sapura Drilling, SapuraOMV and in partnership with Halliburton, secured an Integrated Rig, Drilling, and Completion (i-RDC) Services Contract for six wells offshore in Malaysia. The first of its kind, the i-RDC services contract applies a similar concept to an Engineering, Procurement, Construction, Installation, and Commissioning (EPCIC) contract, where a single solutions partner is appointed and accountable to deliver the entire offshore drilling campaign. Scheduled to commence in the third quarter of calendar year 2021, the contract will be executed by Sapura Esperanza semi-submersible tender-assist drilling rig.
PTTEP Energy Development Company Limited Thailand, awarded Sapura Drilling with a contract with optional extensions for up to 12 months, for the tender assist drilling rig Sapura T-17. The duration of the contract is for three years, commencing between October 2021 to November 2021. Meanwhile, Sapura Drilling also received a contract extension notification from PTT Exploration and Production Public Company Limited and PETTEP International Limited. The extension is for its tender assist drilling rig Sapura T-18, for an additional four months. Sapura Drilling has now eight drillings rigs contracted for work in Q3 FY2022, increasing its fleet utilisation rate to 57 percent.
These awards will boost Sapura Energy’s bottom line and keep the group busy for the next coming months especially during these very uncertain operating environment.