Bursa Announcements
Date : 15 May 2014

OTHERS SAPURAKENCANA PETROLEUM BERHAD - AWARD OF CONTRACTS

SAPURAKENCANA PETROLEUM BERHAD

TypeAnnouncement
SubjectOTHERS
DescriptionSAPURAKENCANA PETROLEUM BERHAD
- AWARD OF CONTRACTS

 

The Board of Directors of SapuraKencana Petroleum Berhad (“SapuraKencana” or “Company”) (“Board”) is pleased to announce that the following companies within the SapuraKencana Group have been awarded the following contracts:

(I) Drilling Division

SapuraKencana Drilling Holdings Limited, a wholly-owned subsidiary, has been awarded a contract for the provision of offshore drilling rig and services by its Tender Assist Drilling Rig “SKD T-20’’ (“SKD T-20”) by CNR International (Côte d'Ivoire) S.A.R.L. (“CNRI”) (“CNRI Contract”).

The CNRI Contract comprises the provision of SKD T-20 for wells in the Espoir Field in Block CI-26 offshore Côte d'Ivoire. The drilling programme includes drilling, side-tracking, completion and other associated works, where applicable. 

The CNRI Contract is for a primary term of ten firm wells to be completed in not less than 365 days, followed by four single well options to be exercised at CNRI’s sole discretion.

(II) Offshore Construction and Subsea Services Division

(i)      TL Offshore Sdn Bhd (“TLO”), a wholly-owned subsidiary, has executed a Charter Party Agreement with Heerema Marine Contractors Nederland SE (“HMC” or “Charterer”) for the provision of a command installation vessel “SK1200” for the Arkutun-Dagi Project in Sakhalin, Russia (“Charter”) (“Arkutun-Dagi Contract”).

Exxon Neftegas Ltd (“Exxon”) has awarded a contract to HMC for the transportation and installation of the Arkutun-Dagi topsides. HMC has in turn awarded TLO with transportation of Exxon’s Temporary Living Quarters under the Charter. The Charter shall be for a firm period of 55 days and Charterer has an option of 15 daily extensions.

(ii) TLO has been awarded a subcontract for the provision of transportation and installation works in connection with the British Gas Exploration & Production India Limited Mukta B Platform and Pipeline Project by Larsen & Toubro Ltd (“L&T”) (“LTS Subcontract”) through L&T Sapura Offshore Private Limited, an Indian joint venture company between L&T and Nautical Power Pte Ltd, a wholly-owned subsidiary of SapuraKencana.

The LTS Subcontract comprises the provision of transportation and installation of jacket, topside and pipelines, including tie-ins, transportation and installation engineering, procurement and provision of riser clamps for risers at existing platforms, pre-commissioning and project management.

(iii) SapuraAcergy Sdn Bhd, a joint venture company equally owned by SapuraKencana and Subsea 7 S.A., has been awarded a contract for the provision of subsea services for the Maharaja Lela South Project (“Maharaja Lela South Project”) by TOTAL E&P Borneo B.V. (“MLS Contract”).

The MLS Contract comprises Engineering, Procurement, Supply, Construction, Pre-Commissioning, Transportation and Installation related to offshore platform and pipeline works together with associated assistance to start-up.

The MLS Contract is for a duration of approximately twenty (20) months.

(III) Fabrication, Hook-up and Commissioning

Kencana HL Sdn Bhd, a wholly-owned subsidiary, has been awarded a contract for the provision of detailed engineering, procurement, construction, and commissioning for the Layang Development (Facilities) Project (“Layang Project”) by JX Nippon Oil & Gas Exploration (Malaysia) Limited (“Layang Contract”).

The Layang Contract comprises the provision of detailed engineering, procurement, construction and commissioning for the Layang Project.

The Layang Project is for a period of two years and is expected to be completed by the second quarter of 2016.

VALUE OF CONTRACTS

The above contracts are valued at approximately USD312 million.

RISK FACTORS

Risk factors affecting the above contracts are mainly operational in nature and include execution risks such as availability of skilled manpower and materials, changes in pricing and/or political, economic and regulatory conditions as well as external factors such as weather condition.  Notwithstanding, the Company has established a successful track record undertaking similar projects.

FINANCIAL EFFECTS
 
The above contracts 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 for the financial year ending 31 January 2015 and the financial periods thereafter during the above contracts period, respectively.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

None of the Directors and/or major shareholders of the Company and/or persons connected with them has any direct or indirect interest in the award of the above contracts.

DIRECTORS’ STATEMENT

The Board is of the opinion that the acceptances of the above contracts are in the best interests of the Company.

This announcement is dated 15 May 2014.

 


Announcement Info

Company NameSAPURAKENCANA PETROLEUM BERHAD  
Stock Name SKPETRO    
Date Announced15 May 2014  
CategoryGeneral Announcement
Reference NoSP-140512-57508

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