Sapura Energy Berhad ("Sapura Energy" or the “Company") is pleased to announce that its wholly-owned subsidiaries have been awarded contracts/contract extensions with a combined value of approximately RM774 million.

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

Engineering & Construction:

Brunei

AWARD OF CONTRACT FOR THE PROVISION OF ENGINEERING, PROCUREMENT, CONSTRUCTION AND INSTALLATION (EPCI) FOR THE SALMAN PROJECT

Sapura Fabrication Sdn. Bhd. has been awarded a contract from Brunei Shell Petroleum Company Sdn. Bhd. for the provision of Engineering, Procurement, Construction and Installation (EPCI) works for the Salman Project in Brunei.      

The scope of work for the Contract is divided into two (2) parts as follows: -

(a) Part 1- Salman Greenfield scope

The scope consists of detailed design engineering, procurement, construction or fabrication, transportation and installation (EPCI) and support for hook-up, pre-commissioning and commissioning for the following five (5) packages: -

(i)     Well-head platform and substructures (SLWJ-01)                  -              Package 1

(ii)    Water injection pipeline and umbilical from CPWA-07            -              Package 2

(iii)   HP oil pipeline to Selangkir (SKWJ-01)                                   -              Package 3

(iv)   Water and chemical injection module in CPWA-07                 -              Package 4

(v)    Kuala Belait Marine construction yard (MCY) upgrade           -              Package 5

(b) Part 2 – Egret East Greenfield scope

Front End Engineering Design (FEED) followed by an optional engineering, construction, procurement and optional installation (EPC(I)) scope up to the completion of the work covering Egret East scope.

The Egret East scope covers the following packages: -

(i)     Well head platform and substructures                                          -              Package 1

(ii)    Oil and gas export pipelines to Egret Main (EGDP-01)             -              Package 2

The duration of the firm scopes for part 1 and FEED for part 2 will be for a period of three (3) years commencing from FY2020 and ending approximately in FY2023.

Malaysia

PROVISION OF PROCUREMENT, CONSTRUCTION, HOOK UP AND COMMISSIONING (PCC) WORKS OF BNJT-K BN-84 WELL TIE-IN FOR BARDEGG-2 AND BARONIA ENHANCED OIL RECOVERY (EOR) DEVELOPMENT PROJECT FOR PETRONAS CARIGALI SDN BHD

Sapura Fabrication Sdn. Bhd. has been awarded a contract for the provision of Procurement, Construction, Hook-up and Commissioning (PCC) works of BNJT-K BN-84 Well Tie-In for Bardegg-2 and Baronia EOR Development Project from PETRONAS Carigali Sdn. Bhd.

The Contract scope of work consists of procurement, construction, commissioning and start-up of the BNJT-K BN-84 well tie-in. The scope of work also includes project management, administration, fabrication engineering and pre-engineering of the materials, as well as hook-up and commissioning of the well start-up.

Works are expected to be completed by Q3 FY2020.

Drilling:

Thailand

AWARD OF CONTRACT FOR TENDER ASSIST DRILLING RIG “SAPURA T-17” BY PTT EXPLORATION AND PRODUCTION PUBLIC COMPANY LIMITED

Sapura Drilling Asia Limited has been awarded a contract by PTT Exploration and Production Public Company Limited for the provision of its tender assist drilling rig “Sapura T-17” services.

The scope of work comprises the provision of barge tender-assist drilling rig services for one (1) year  commencing Q1 FY2021 plus options for extension, at the Bongkot field, offshore Gulf of Thailand.

Malaysia

LETTER OF CONTRACT AMENDMENT AND EXTENSION BY PETRONAS CARIGALI SDN. BHD FOR THE PROVISION OF SEMI-SUBMERSIBLE TENDER-ASSIST DRILLING RIG “SAPURA BERANI”

Sapura Drilling Asia Sdn. Bhd. has been awarded a Letter of Contract Amendment and Extension by PETRONAS Carigali Sdn. Bhd. for the provision of semi-submersible tender-assist drilling rig, “Sapura Berani”.

The Contract entails the drilling of five (5) additional wells at Erb West, offshore Sabah and Dulang facilities, offshore Peninsular Malaysia. The work related to the five wells is expected to be completed by Q2 FY2021.

Brunei

EXTENSION OF CONTRACT FOR SEMI-SUBMERSIBLE TENDER-ASSIST DRILLING RIG “SAPURA PELAUT” FROM BRUNEI SHELL PETROLEUM COMPANY SDN. BHD.

Sapura Drilling Sdn. Bhd. has been awarded a contract extension from Brunei Shell Petroleum Company Sdn. Bhd. for the provision of a semi-submersible tender-assist drilling rig, “Sapura Pelaut”, and drilling services.

The scope of the Contract Extension comprises the provision of a semi-submersible tender-assist drilling rig for a firm period of one (1) year from Q1 FY2021.

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, 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 27 September 2019.