Sapura Energy Berhad ("Sapura Energy" or the “Company") is pleased to announce that its wholly-owned subsidiaries have been awarded contracts/contracts extension with a combined value of approximately RM1.002 billion.

Details of each of these contracts/contracts extension (collectively referred to as “Contracts”) are as summarised below:

Engineering & Construction:

Taiwan

1. Provision of Transportation and Installation of Offshore Wind Turbine Substructures for Yunneng Wind Power Co. Ltd

Sapura Offshore Sdn. Bhd. has been awarded with a contract for the provision of Transportation and Installation of Offshore Wind Turbine Substructures by Yunneng Wind Power Co. Ltd.

The contract scope of work include transportation and installation of substructures (foundations) for the offshore wind turbines at the Yunlin Offshore Wind Farm in Taiwan. 

The work is expected to be completed by Q3 FY2021.

Malaysia

1. Provision of Transportation and Installation of Subsea Flexible Pipelines and Risers for Layang Development Project for JX Nippon Oil & Gas Exploration (Malaysia) Limited

Sapura Offshore Sdn. Bhd. has been awarded with a contract for the provision of Transportation and Installation of Subsea Flexible Pipelines and Risers for Layang Development Project by JX Nippon Oil & Gas Exploration (Malaysia) Limited.

The contract scope of work includes transportation and installation of subsea flexible pipeline and risers for the Layang Development Project. The Layang field shall be developed from an unmanned wellhead platform connected with a subsea flexible pipeline to a Floating Production Storage and Offloading.

The works are expected to be completed by Q4 FY2020.

Australia

1. Provision of Pluto PLA-07 Light Well Intervention and Subsea Christmas Tree (XT) Installation for Woodside Burrup Pty Ltd

Normand Sapura Pty Ltd. has been awarded with a contract for the Pluto PLA-07 Light Well Intervention and XT Installation by Woodside Burrup Pty Ltd.

The contract scope of work for PLA-07 RLWI include well jumper fabrication and installation,XT installation, hydraulic flying lead and electrical flying lead installation, suspension plug recovery and pre-commissioning works.

The work is expected to be completed by Q4 FY2020.

2. Provision of Light Well Intervention in two wells on the North West Shelf by Woodside Energy Limited

Normand Sapura Pty Ltd. has been awarded with a contract for Light Well Intervention in two wells on the North West Shelf by Woodside Energy Limited.

The contract scope of work for WA-03 and WA-11 include wireline and slickline operations including the installation of suspension plugs, performing production logging tool runs and installation of straddle patches as required.

The work is expected to be completed by Q4 FY2020.

3. Provision of Subsea Services associated with repair of the Subsea Umbilical System for the Casino Henry and Netherby Electrical Umbilical Backbone Repair Project by Cooper Energy Limited

Sapura Projects Pty Ltd. has been awarded with a contract for the provision of Subsea Services associated with repair of the Subsea Umbilical System for the Casino Henry and Netherby (“CHN”) Electrical Umbilical Backbone Repair Project by Cooper Energy Limited.

The contract scope of work includes the modification to the existing and installation of new subsea umbilicals and ancillary appurtenances from the Casino 5 UTA to Netherby that forms part of the Casino Henry and Netherby Electrical Backbone Repair project.

The work will be completed by Q2 FY2020.

Thailand

1. Provision of Engineering, Procurement, Construction and Installation of FSO2 Riser Hose Replacement for PTT Exploration and Production Public Company Limited and PTTEP International Limited

Sapura Energy (Thailand) Limited has been awarded a contract from PTT Exploration and Production Public Company Limited and PTTEP International Limited for the provision of engineering, procurement, construction and installation of FS02 Riser Hose Replacement in the Gulf of Thailand.

The contract scope of work includes project management, engineering, procurement, fabrication, load-out and offload, sea fastening, transportation and installation, hook-up, tie-in and pre-commissioning for four sections of new flexible riser hoses at Bongkot gas field in the Gulf of Thailand, with a water depth of approximately 80 meters.

The work is expected to be completed by Q2 FY2020.

2. Provision of Remotely Operated Vehicle (“ROV”) Services for Subsea Inspection, Repair and Maintenance for PTT Exploration and Production Public Company Limited and PTTEP International Limited

Sapura Energy (Thailand) Limited has been awarded with a three (3) years contract from PTT Exploration and Production Public Company Limited and PTTEP International Limited for the provision of ROV inspection services for subsea inspection, repair and maintenance in the Gulf of Thailand.

The contract scope of work includes planned and unplanned ROV inspection activities in Bongkot and Arthit gas fields located offshore in the Gulf of Thailand mainly for structural inspection, pipeline inspection, freespan correction and associated miscellaneous works, with a water depth of approximately 80 meters.

The contract will end in Q4 FY2022.

Drilling:

Malaysia

1. Provision of Semi Tender Assisted Drilling Rig “Sapura Esperanza” for Sarawak Shell Berhad and Sabah Shell Petroleum Company Limited

 Sapura Drilling Asia Sdn. Bhd. has been awarded with a contract by Sarawak Shell Berhad and Sabah Shell Petroleum Company Limited for the provision of its Semi Tender Assisted Drilling Rig “Sapura Esperanza” services.

The scope of the contract comprises the provision of semi-submersible tender assisted drilling rig services for two (2) wells commencing from mid-second quarter of FY2020 at F14 field, offshore Malaysia. The contract is assorted of multiple extension periods cumulating seventeen (17) additional wells in aggregate.

2. Provision of Tender Assisted Drilling Rig “Sapura T-10” for West Lutong Drilling Programme for PETRONAS Carigali Sdn Bhd

Sapura Drilling Asia Sdn. Bhd. has been awarded with a contract by PETRONAS Carigali Sdn. Bhd. for the provision of Tender Assisted Drilling Rig “Sapura T-10” for West Lutong Drilling Programme.

The scope of contract comprises the drilling of four (4) wells commencing in fourth quarter of FY2020 with extension options of one (1) well + one (1) well.

Thailand

1. Provision of Tender Assisted Drilling Rig “Sapura T-18” for Chevron Thailand Exploration & Production Limited

Sapura Drilling Asia Limited has been awarded a contract by Chevron Thailand Exploration & Production Limited for the provision of its Tender Assisted Drilling Rig “Sapura T-18”.

The scope of the contract comprises the provision of the tender assisted drilling rig offshore Thailand for a period of one (1) year with additional optional periods of up to twelve (12) months commencing mid-second quarter of FY2020.

Other:

In addition, Sapura Fabrication Sdn. Bhd. has been awarded by PETROLIAM NASIONAL BERHAD to undertake the scope of work defined below for the PETRONAS Frame Agreement for the Provision of EPC for both Package A : Fixed Offshore Structures of Weight exceeding (>) 7,500 MT and Package B: Fixed Offshore Structures of Weight not exceeding or equal to (<) 7,500 MT. The contract will be used by and shall be applicable to the Petroleum Arrangement Contractors (PAC) which includes but not limited to the following:

1. PETRONAS Carigali Sdn Bhd;

2. Sarawak Shell Bhd / Sabah Shell Petroleum Company Limited;

3. MURPHY Sarawak Oil Co., Ltd. / MURPHY Sabah Oil Co., Ltd; 

4. Repsol Oil & Gas Malaysia Limited; and

5. ExxonMobil Exploration and Production Malaysia Incorporated.

The scope of work includes Surveys (pre-engineering, post construction/pre-installation and post installation), Design, Engineering, Procurement, Fabrication, Load Out, Tie Down/Sea Fastening Tow-out/Sail Out, Transportation, Installation, Hook-Up, Testing, Pre-Commissioning and Commissioning of the fixed structures.

The contract is for a period of 6 years and the works to be performed based on a call-out basis and the value of the contract is dependent on each work order throughout the contract period.

FINANCIAL EFFECTS

The Contracts announced herein will have no effect on the issued capital of the Company and are expected to contribute positively towards the earnings of Sapura Energy Group (“the Group”) for the financial year ending 31 January 2020 and the financial periods thereafter within the Contracts period.

RISK FACTORS

Risk factors affecting the Contracts include execution risks such as availability of skilled manpower and materials, changes in pricing, onshore permits to be obtained, weather conditions and/or political, economic and regulatory conditions. Notwithstanding, the Group has established a successful track record undertaking similar projects. 

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

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 and extension of the Contracts herein.

DIRECTORS’ STATEMENT

The Board is of the opinion that the acceptance of the Contracts herein is in the best interest of the Company.

The announcement is dated 26 June 2019.