- The StarBiz reported today that SapuraKencana Petroleum is poised to land two jobs, in India and Mexico, potentially totalling about USD1.5bil (RM5.35bil).

- For the India job, it is understood that SapuraKencana, through its wholly-owned subsidiary TL Offshore Sdn Bhd, has put in the lowest bid – between USD273mil and USD291mil – among four contenders interested in a portion of the ONGC’s Mumbai High South (MHS) phase three redevelopment project to the tune of USD200mil- USD300mil.

- Likely frontrunner and local-based Larsen & Toubro Ltd has put in a higher bid of USD390mil, while Abu Dhabi-based National Petroleum & Construction Co and USbased McDermott have put in bids of USD471mil and USD406mil, respectively.

- SapuraKencana may also face stiff competition if Singapore’s Swiber Holdings Ltd is successful in resubmitting its bid after it had failed to do so earlier due to technical issues.

- According to the daily, the MHS project is speculated to require a new 12-slot wellhead platform and two nine-slot platforms with clamped-on structures to be installed. The job would also entail the laying of pipes totalling 115.9km in 15 segments.

- Details are scarce for the Mexico job, except that the deepwater and shallow structure contracts may be worth up to USD400mil.

- If successful, this would be the first major contract win for the year. We have currently imputed RM6bil-RM8bil in new orderbook assumptions for FY16F-FY18F. The group’s orderbook stood at RM25.7bil as at March 2015 and remains the largest within the O&G sector.

- Maintain HOLD on SapuraKencana Petroleum with an unchanged fair value of RM2.45/share, based on an FY16F PE of 12x.

Source: AmeSecurities Research - 7 May 2015