Latest contract win is in addition to a US$1.4 billion Petrobras award in November 2011 to SapuraKencana for 3 pipe laying support vessels (PLSVs). New award brings total value of Petrobras contracts awarded to SapuraKencana to USD$4.1 billion.
Leading world integrated oil and gas services provider, SapuraKencana Petroleum Berhad (SKPB), has won a major new award worth US$2.7 billion from Brazil¹s Petroleo Brasileiro (Petrobras) to build, charter and operate 3 additional deepwater flexible pipe laying support vessels (PLSVs) for a firm period of 8 years.
The new contract was awarded to SapuraKencana’s associate company, Sapura Nevegacao Maritima S.A. Brazil (SNM), following a Petrobras tender that was launched late last year. Petrobras, an integrated energy company, is a publicly traded corporation with the Government of Brazil as the majority shareholder and presence in 28 countries.
Under the terms of the latest award, the 3 new PLSVs will be built outside Brazil. SNM has been contracted to charter and operate the new vessels for a period of 8 years, with extension option for an additional 8 years.
The PLSVs are due to be delivered for operation from around the second quarter of 2016, from when revenue from the award is expected to be generated, SapuraKencana said in a notice to Bursa Malaysia on Thursday (June 27 2013).
The award will have no effect on the issued and paid up share capital of SapuraKencana, but is expected to contribute positively to the Group¹s net assets and future earnings.
In November 2011, SapuraKencana was awarded its maiden Petrobras contract worth US$1.4 billion for the building, charter and operation of 3 similar PLSVs. Two of those 3 vessels are being built outside Brazil and revenue from the vessels is expected to be generated by the fourth quarter of 2014.
Commenting on the latest Petrobras award, SapuraKencana President and Group CEO, Tan Sri Shahril Shamsuddin said, “The new Petrobras award is yet another major milestone for SapuraKencana because it further adds to our deepwater capabilities. The 3 new PLSVs will be capable of laying flexible pipelines in up to 3,000 metres water depth offshore Brazil which offers some of the most exciting opportunities in the global oil and gas sector."
“The award builds greater confidence in SapuraKencana as a technically sound services provider, with solid expertise and capability to provide world class integrated oil and gas services solutions to a host of national oil companies and major international oil majors in Latin America, West Africa, Australia and other parts of the world," he said.
“This expanded new business overseas, coupled with anticipation of more work in Malaysia arising from the ongoing quest to extract more hydrocarbons deeper, as well as new opportunities opening up in West Africa, China, India and Mexico augurs well for SapuraKencana in the near to medium term,” he noted.