Kuala Lumpur, 8 June 2023
Sapura Energy Berhad (“Sapura Energy”, or the “Company”) and its group of companies (“the Group”) are pleased to announce that its Engineering and Construction (E&C), Drilling, and Operations & Maintenance (O&M) business segments, through its wholly-owned subsidiaries, have secured 10 contract wins across the Asia Pacific and Atlantic regions between December 2022 to May 2023.
The E&C business segment secured RM979 million in contract wins, Drilling RM352 million, while O&M secured RM34 million, amounting to a combined value of about RM1.4 billion. More than 70 percent of the combined contract value are from projects outside of Malaysia.
These wins are testament to Sapura Energy’s resilience and is part of a shift in its bid strategy to focus on contracts and regions where the Group is highly competitive. Sapura Energy Group CEO Datuk Mohd Anuar Taib said, “Deploying some of our assets to new regions enabled us to secure new clients as well as overcome limitations brought on by financial constraints. We are also grateful for the trusted partnerships we have established with new and existing clients, who have continued to seek our solutions to deliver their projects.”
The shift in strategy bore early results in Financial Year 2023 (“FY 2023”), as Sapura Energy recovered from an operating loss of RM2.2 billion in the previous financial year to an operating profit of RM751 million in FY2023 despite the limited working capital and macroeconomic challenges. Building on the positive momentum achieved last year, the Company is determined to extend the turnaround and continue exploring opportunities in the Eastern and Western Hemispheres in which the Group could maximise its assets and capabilities.
A TRUSTED GLOBAL ENERGY AND SOLUTION COMPANY IN THE APAC AND ATLANTIC REGION
E&C Business Segment
Sapura Offshore Sdn Bhd and Sapura Energy DMCC have been awarded a contract by ENI Congo for the provision of offshore transportation and installation (T&I) services in the Republic of Congo. The contract will take effect immediately for a duration of one year.
The T&I project is scheduled for completion in the fourth quarter of calendar year 2023.
Closer to our home-base, the Group’s Sapura Energy (Thailand) Limited has won two contracts in Thailand for offshore wellhead platform and pipeline installation and removal activities.
The first contract, awarded by Chevron Thailand Exploration and Production Ltd and Chevron Offshore (Thailand) Ltd, is a work order for Year 2023 Pipelines Transportation, Installation, and Removal Campaign in Thailand. The scope of work comprises engineering, procurement, construction, installation, and removal of wellhead platforms and pipelines. The project is expected to be completed by end of calendar year 2023.
The second contract was awarded solely by Chevron Thailand Exploration and Production Ltd. This contract encompasses services such as engineering, procurement, prefabrication, and removal of subsea pipelines, as well as wastewater management. The project is targeted to be completed by end of calendar year 2023.
In Australia, Woodside Energy Ltd, an operator of Western Australia’s North West Shelf (NWS) Project, awarded Normand Sapura Pty Ltd a contract for the intervention and removal of a plug within the wellbore of the Tidepole TPA03 subsea well.
The contract scope of work comprises the supply of an offshore vessel, equipment, and personnel to undertake all aspects of planning and execution of the intervention and removal works. The project is anticipated to be completed by the third quarter of the calendar year 2023, pending all requisite approvals.
The E&C business continued to strengthen its decommissioning portfolio when Sapura Project Pty Ltd secured a contract in New Zealand from the Ministry of Business, Innovation and Employment for the Tui Field Decommissioning Programme. The contract entails the recovery of four mid-water arches, its gravity bases, and tethering chains from the Tui field, and will be offloaded to a laydown area at Port Taranaki for processing and removal. The project is scheduled to take place over two weeks in the period of December 2023 to March 2024.
Drilling Business Segment
Sapura Drilling Asia Sdn Bhd (Sapura Drilling) has received multiple contracts for the provision of semisubmersible tender-assist drilling (TAD) rig services in Malaysia.
The first contract, awarded by Vestigo Petroleum Sdn Bhd, involves the utilisation of Sapura Berani for the Larut Complex Late Life Redevelopment Project. The estimated contract duration is seven months and the offshore campaign is expected to be completed in the fourth quarter of the calendar year 2023.
Another contract was awarded by Sarawak Shell Berhad and Sabah Shell Petroleum Co Ltd (SSB/SSPC) for the utilisation of Sapura Esperanza to drill two wells in the Timi Development Campaign, and one well in the F14 Infill Campaign. This contract is expected to end by the third quarter of calendar year 2023.
Sapura Drilling was also awarded several other contracts of semi-submersible tender-assist drilling rig services for rigs Sapura Esperanza, Sapura Pelaut, and Sapura Alliance which is expected to complete latest by the fourth quarter of calendar year 2023.
O&M Business Segment
In the O&M business segment, Sapura Technology Solutions Sdn Bhd has secured a contract from PETRONAS Carigali Sdn Bhd (PCSB) for additional Field Service Engineer (FSE) services on a turnaround (TA) call-out basis, comprising commissioning and start-up of the KINEW Compressor Upgrading Project at PCSB-SBA Erb West Platform. The project is scheduled for completion in the fourth quarter of 2023, with an estimated duration of four months.
Sapura Nautilus Sdn Bhd, a wholly-owned subsidiary under the O&M business segment, was granted a contract from SapuraOMV Upstream (Sarawak) Inc to provide one dynamic positioning accommodation workboat vessel for E11R-B Host Tie-In Modification Works for year 2023 (WO53). The estimated duration of the contract is 19 weeks, with an additional four weeks extension option on a weekly basis.
The contract is set to commence in the second quarter of the calendar year 2023. The same subsidiary has also been awarded a contract from PCSB for the provision of anchor handling and tug supply services. The contract is expected to be completed in the fourth quarter of calendar year 2023.
These contracts are scheduled to be completed as stipulated, barring any unforeseen circumstances. In addition to the contract wins, the Group’s E&C team is in the midst of negotiations with its clients to rescope certain ongoing contracts, following the changes made by its clients during project execution.
These contracts are namely, the Engineering, Procurement, Construction, and Installation (“EPCI”) Contract for Salman, announced on 27 September 2019; the Offshore Process Platform (CPP & LQUP) Project for the Development of Kg Dwn 98/2 Nelp Block, announced on 6 December 2018; the EPCI for the Wellhead Platform in the Dorado Project, announced on 30 September 2021; and the EPCI for the SBM Pipeline Rejuvenation Phase II Project, announced on 3 June 2020.
Cautionary note: “Sapura Energy”, “the group” and “the company” are used for convenience where references are made to Sapura Energy Berhad in general. Similarly, words like “we”, “us” and “our” are used to refer to Sapura Energy Berhad in general or to those who work for the company and its subsidiaries, where relevant. This press release may contain forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding our financial position, financial estimates, business strategies, prospects, plans and objectives for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forwardlooking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Such forward-looking statements reflect our current view with respect to future events and are not a guarantee of future performance. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”, “forecast” or similar expressions and include all statements that are not historical facts.