SKPETRO - OTHERS SAPURAKENCANA PETROLEUM BERHAD - AWARD OF CONTRACTS AND CONTRACT EXTENSION
| Company Name | SAPURAKENCANA PETROLEUM BERHAD |
| Stock Name | SKPETRO |
| Date Announced | 5 Dec 2014 |
| Category | General Announcement |
| Reference No | SP-141205-64523 |
| Type | Announcement |
| Subject | OTHERS |
| Description | SAPURAKENCANA PETROLEUM BERHAD - AWARD OF CONTRACTS AND CONTRACT EXTENSION |
INTRODUCTION The Board of Directors of SapuraKencana Petroleum Berhad (“SapuraKencana” or “Company”) (“Board”) is pleased to announce that companies within the SapuraKencana Group have been awarded contracts with a combined value of approximately RM1.58 billion (approximately USD459 million, based on USD/MYR exchange rate of 3.45). Details of each of these contracts by the relevant operating division of SapuraKencana are summarised below : (I) Fabrication, Hook-up and Commissioning (“FHUC”) Division – three contracts with various scope of works with a combined value of approximately RM710 million (USD206 million); (II) Offshore Construction and Subsea Services (“OCSS”) Division – three contracts with various scope of works with a combined value of approximately RM520 million (USD151 million); and (III) Drilling Division – two contracts (one contract award and one contract extension) for the provision of offshore drilling rigs and services with a combined value of approximately RM350 million (USD102 million).
i. Award of Contract for Engineering, Procurement, Construction and Commissioning (“EPCC”) of BNJT-K (Baronia) and TTJT-A (Tukau) Wellhead Platforms (“WHP”) for Offshore Sarawak by PETRONAS Carigali Sdn Bhd ("PCSB") SapuraKencana’s wholly-owned subsidiary, Kencana HL Sdn. Bhd. ("KHL"), has been awarded by PCSB with an EPCIC contract for BNJT-K (Baronia) and TTJT-A (Tukau) WHP. The contract comprises engineering, procurement, construction and commissioning of two wellhead platforms. The contract is for a duration of 48 months and is expected to be completed by the fourth quarter of 2018. The contract value is approximately RM480 million. ii. Award of Contract for the Provision of Brownfield Works on MDPP, MDB and JKB Platforms for Phase 3 Development Project Contract by Carigali-PTTEPI Operating Company Sdn. Bhd. KHL has been awarded a contract for the Provision of Brownfield Works on MDPP, MDB and JKB Platforms for Phase 3 Development Project by Carigali-PTTEPI Operating Company Sdn Bhd. The contract is expected to be completed by the first quarter of 2016. The contract value is approximately USD26 million. iii. Award of Contract for the Procurement, Construction and Commissioning (“PCC”) of the Angsi compression module by PCSB KHL has been awarded a PCC contract for the Angsi compression module by PCSB. The contract is expected to be completed by the fourth quarter of 2015. The contract value is approximately RM140 million.
i. Award of Contract for the Provision of Transportation and Installation ("T&I") of Central Processing Platform for Tembikai (OIL) Development, Terengganu by Vestigo Petroleum Sdn. Bhd. SapuraKencana’s wholly-owned subsidiary, TL Offshore Sdn. Bhd., has been awarded a contract by Vestigo Petroleum Sdn. Bhd. for the Provision of Transportation and Installation ("T&I") of the Central Processing Platform (“CPP”) for the Tembikai (OIL) Development, (“Tembikai Oil Project”). The Tembikai Oil Project comprises transportation and installation of the CPP “Tembikai Oil” for the development of Tembikai Marginal field located approximately 150km east of Terengganu, Offshore Peninsular Malaysia. The contract is expected to be completed around March 2015. The scope of work is valued at approximately USD12.9 million. SapuraAcergy (Australia) Pty Ltd, a wholly owned entity of SapuraAcergy Sdn. Bhd., a joint venture company equally owned by SapuraKencana and Subsea 7 S.A. had entered into a sub-contract with Heerema Marine Contractors Australia Pty Ltd. The sub-contract is for the provision of buoyancy tanks removal and disposal for the Chevron Wheatstone project which is located in Wheatstone field, Western Australia. The sub-contract is valued at approximately USD18.0 million. iii. Award of Contract by Total E&P Myanmar for the Engineering, Procurement, Construction and Installation of the Wellhead Platform 4 and Lower Compression Platform, Pipelines and Cable SapuraAcergy Sdn. Bhd., a joint venture company equally owned by SapuraKencana and Subsea 7 S.A. has been awarded with a contract from Total E&P Myanmar for the Engineering, Procurement, Construction and Installation of the Wellhead Platform 4 and Lower Compression Platform, Pipelines and Cable (“EPCI2”). Contract works for the EPCI2, which is located in Yadana Field, Offshore Myanmar, are expected to be completed by the fourth quarter of 2016. The contract is valued between USD 120.0 million and USD130.0 million. DRILLING DIVISION i. Award of Contract by Foxtrot International LDC for the Provision of Semi-Tender Assist Drilling Rig “SKD Alliance” SapuraKencana’s wholly-owned subsidiary, SapuraKencana Drilling Holdings Ltd, has been awarded a contract by Foxtrot International LDC, a company incorporated in Cayman Islands, whose main place of business activities is in Abidjan, Ivory Coast (“Foxtrot”) for the provision of its Semi-Tender Assist Drilling Rig “SKD Alliance” (“SKD Alliance”) with an option to extend for a further three wells. Foxtrot intends to utilise SKD Alliance for its development drilling campaign offshore Ivory Coast. The contract is for a period of approximately 400 days commencing February 2015. ii. Extension of Contract for the Semi-Tender Assist Drilling Rig “West Esperanza” with Hess Equatorial Guinea Inc. SapuraKencana’s wholly owned subsidiary, Seadrill Esperanza Limited, has accepted a three month extension to its contract with Hess Equatorial Guinea Inc. (“Hess Equatorial Guinea”) for the provision of its Semi-Tender Assist Drilling Rig “West Esperanza” (“West Esperanza”). Hess Equatorial Guinea will continue to use West Esperanza for its development drilling campaign offshore Equatorial Guinea. The extension is for a period of three months commencing around September 2015 until approximately December 2015.
The contracts announced herein will have no effect on the issued and paid-up share capital of the Company and are expected to contribute positively towards the earnings of SapuraKencana Group principally for the financial year ending 31 January 2015 and, for contracts that extend beyond 31 January 2015, the financial period(s) thereafter during their respective contract periods.
Risk factors affecting the contracts include execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions, and/or political, economic and regulatory conditions. Notwithstanding, the Company has established a successful track record undertaking similar projects.
None of the Directors and/or major shareholders of the Company and/or persons connected with them have any direct or indirect interest in the award of the contracts herein.
The Board is of the opinion that the acceptance of the contracts herein is in the best interest of the Company. This announcement is dated 5 December, 2014. | |
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