KUALA LUMPUR: SapuraKencana Petroleum Bhd's units and their partner have reached a mutual agreement with Petroliam Nasional Bhd (Petronas) to cease the Berantai Risk Service Contract (RSC).
SapKen said on Monday the agreement was signed between its units Sapura Energy Ventures Sdn. Bhd. and Kencana Energy Sdn Bhd with Petrofac Energy Developments Sdn Bhd for the RSC in Jan 31, 2011.
The contract, awarded by Petronas, was for the development and production of petroleum from the Berantai field, located offshore Peninsular Malaysia.
The two units hold 25% each in the Berantai RSC while Petrofac is the major shareholder with a 50%.
“With the cessation of the RSC, which will be effective on Sept 30, 2016, Petronas will reimburse all outstanding capital and operational expenditures to the contractors by June 2017. As part of the arrangement, the ownership of Berantai FPSO will be transferred to Petronas,” it said.
SapKen president and group CEO Tan Sri Shahril Shamsuddin said: “We continue to support Petronas in its efforts to reduce costs and optimise its operations with a view of preserving the long-term value of the project.
“We would like to thank Petronas for giving us the opportunity to demonstrate our capabilities to construct and install an integrated facility for the Berantai field. Together with our partner, we have managed to operate the facilities over the past 4 years safely,” he said.