Sapura Energy clinches six contracts worth RM2.7 bil

KUALA LUMPUR (June 16): Practice Note 17 company Sapura Energy Bhd has secured six contract wins in Asia-Pacific and Atlantic regions, with a combined value of RM2.7 billion, of which RM176 million is contributed by its joint venture company.

The oil and gas group said these wins are a testament to its reset plan, which includes a shift in the group's bid strategy to focus on areas where it is highly competitive.

"Our drilling business segment continues to secure new contracts under the current market conditions," Sapura Energy said in a statement.

The segment is expected to increase its asset utilisation rate, from the current eight rigs in operations, to 11 rigs by the end of the financial year ending Jan 31, 2023, the group added.

Sapura Energy said its engineering & construction (E&C) segment has strengthened its presence in the Atlantic region with an engineering, procurement, construction and installation subsea umbilicals, risers and flowlines contract award by Enauta Energia SA to Sapura Energy Do Brasil and its consortium partner, Sapura Navegação Marítima S.A.

"The contract commenced in the first quarter of calendar year 2022 for a duration of 33 months and is expected to achieve its first oil in 2024," it said.

The group added that through its subsidiary Sapura Offshore Sdn Bhd, its E&C segment has been awarded a transportation and installation contract by Hess Exploration And Production Malaysia B.V.

"The contract scope of work includes transportation and installation of a 51km pipeline, three wellhead platforms, two flexible pipelines, and subsea facilities in the North Malay Basin development," it said.

Shares in Sapura Energy closed unchanged at five sen on Thursday, giving the group a market capitalisation of RM719.06 million.