SapuraKencana Grabs $125m in New Contracts

Published at 10:51AM - 30/09/16

SapuraKencana Petroleum Berhad has been awarded new contracts within the global oil and gas industry worth a combined value of US$215 million (£165.98 million).

Under the agreements signed, SapuraKencana will provide services to Oil and Natural Gas Corporation Limited (ONGC), Brunei Shell Petroleum and Petronas.

“A consortium of SapuraKencana TL Offshore and SapuraKencana has been awarded a contract by Oil and Natural Gas Corporation Limited (ONGC) in relation to the B127 Cluster Pipeline RTR Project,” the company informed in a statement.

SapuraKencana Grabs $125m in New Contracts

Under the agreement, the company will provide engineering, procurement, construction, installation and commissioning services for eleven pipeline systems and associated topside modifications.

The services will be provided for 20 months, on the B127 pipeline and surrounding Mumbai High fields, located off the west coast of India.

SapuraKencana Offshore Drilling Crew
SapuraKencana Offshore Drilling Crew

As well as this, the company was awarded a contract for the provision of tender assist drilling rig SKD Pelaut by Brunei Shell Petroleum.

The contract follows a partnership between the two companies whereby they will use SKD Pelaut as a technical solution for the development drilling campaign offshore Brunei Darussalam, for a firm period of two years with options to extend for a further 2 years.

SapuraKencana Reports Declining Profits Over Q2 

Finally, the company was awarded a contract for the provision of underwater maintenance services for Petronas’ Sepat Mobile Offshore Production Unit (MOPU).

The contract includes inspection, maintenance, repairs, drilling support and other work for the company’s underwater facilities.

Work will be executed onshore and offshore Peninsular Malaysia at a water depth of up to 2,000 metres (6,561 feet) at the Sepat MOPU Field, for approximately 2 months.

Over the second quarter of the year, SapuraKencana reported a 7.8% increase in earnings compared to the same period a year ago.

This was caused by lower activities, but it was offset by higher contribution from the joint venture companies, the company informed.

Its drilling segment revenue also fell by 31.4%, mainly due to lower revenue from rigs off contract during the quarter, while the energy segment reported a 77.4% downfall in profit.