Sapura Energy Bhd has won a job, with an estimated value of RM2bil, from Mubadala Petroleum.
The integrated oil and gas services company said in a statement yesterday that the contract awarded to its wholly-owned subsidiary Sapura Fabrication Sdn Bhd is to undertake engineering, procurement, construction, installation and commissioning (EPCIC) works for the Pegaga gas development field in Block SK320, offshore Sarawak.
Sapura Energy said the latest contract – the group’s sixth job win since the beginning of 2018 – would bring its year-to-date job wins to nearly RM3bil.
Sapura Energy president and group CEO Tan Sri Shahril Shamsuddin said the job wins to date represented a good start for the company.
On the deal from Mubadala Petroleum, he said: “We are proud to be working with a highly respected company such as Mubadala Petroleum and supporting its first development in Malaysia.
“This contract win is a recognition of our strong track record and technical capabilities in delivering innovative technologies and fit-for-purpose solutions,” he added.
Sapura Energy’s shares gained three sen yesterday to close at 51.5 sen.
The group said the EPCIC scope under the latest contract win would cover work for an offshore integrated central gas processing platform facility for the Pegaga gas field located in the Central Luconia province, offshore Sarawak, at about 108m water depth.
The works are expected to be completed by the third quarter of 2021.
Prior to the contract from Mubadala Petroleum, Sapura Energy had secured five contracts, worth a combined value of over RM900mil, since the start of 2018. The five contract wins earlier this year were with Petronas Carigali, Hess Exploration and Production Malaysia BV, Malaysia Marine and Heavy Engineering Sdn Bhd and Mumbai Port Trust.
Sapura Energy viewed the increased capital spending by oil and gas firms as an indication that the industry was making a gradual shift towards better times amid renewed optimism.
On its RM3bil worth of job wins year-to-date, the group said: “Collectively, these contracts are expected to contribute positively towards the group’s earnings for the financial year ending Jan 31, 2019.”
Mubadala Petroleum is the operator of Block SK320 with 55% interest, while Petronas Carigali holds 25% and Sarawak Shell 20% interest.