INTRODUCTION

Sapura Energy Berhad (“Sapura Energy" or the “Company”) is pleased to announce that its wholly-owned subsidiaries and joint venture have been awarded contracts/contract extension with a combined value of approximately RM1.85 billion. 

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

Engineering & Construction:

Saudi Arabia

AWARD OF CONTRACT VIA RELEASE OF PURCHASE ORDER 59 (“CRPO 59”) ISSUED UNDER LONG-TERM AGREEMENT (“LTA”) PROGRAMME WITH THE SAUDI ARABIAN OIL COMPANY (“SAUDI ARAMCO”) 

Sapura Fabrication Sdn. Bhd. and Sapura Saudi Arabia Company have been awarded with the In-Kingdom and Out of Kingdom CRPO 59 for three (3) oil jackets in Zuluf, Ribyan and Abu Sa'fah oilfields issued under LTA Contract by Saudi Aramco and Aramco Overseas Company BV.

The scope of work for this contract includes the engineering, procurement, fabrication, transportation and installation as well as pre-commissioning of three (3) oil jackets for wellhead platforms in Zuluf, Ribyan and Abu Safah oilfields, located in The Kingdom of Saudi Arabia.

The works are expected to be completed by the first quarter of calendar year 2022.

Thailand

AWARD OF SERVICE REQUEST FOR YEAR 2021 WELLHEAD PLATFORMS & PIPELINES INSTALLATION AND WELLHEAD PLATFORMS REMOVAL CAMPAIGN BY CHEVRON THAILAND EXPLORATION AND PRODUCTION LTD., CHEVRON OFFSHORE (THAILAND) LTD. AND CHEVRON PATTANI, LTD.

Sapura Energy (Thailand) Limited has received an award of service request for Year 2021 Wellhead Platforms & Pipelines Installation and Wellhead Platforms removal campaign (“Contract”) in Thailand from Chevron Thailand Exploration and Production Ltd., Chevron Offshore (Thailand) Ltd. and Chevron Pattani, Ltd.

The contract scope of work comprises engineering, procurement, construction and installation of wellhead platforms and pipelines and the wellhead platforms removal.

The works are expected to be completed by Q4 FY2022.

Malaysia

CONTRACT FOR PAN MALAYSIA TRANSPORTATION AND INSTALLATION OF OFFSHORE FACILITIES FROM PTTEP SARAWAK OIL LIMITED

Sapura Offshore Sdn. Bhd. has been awarded a contract for the Transportation and Installation of Offshore Facilities under the Pan Malaysia Transportation and Installation of Offshore Facilities (Year 2020) by PTTEP Sarawak Oil Limited.

The contract scope of work comprises the transportation and installation of approximately 12”x10km of underwater pipeline offshore Sarawak. The works are expected to be completed by May 2021.

CONTRACT FOR THE TRANSPORTATION AND INSTALLATION WORKS (CAMPAIGN 1) FOR KASAWARI GAS DEVELOPMENT PROJECT FROM HEEREMA MARINE CONTRACTORS

Sapura Offshore Sdn. Bhd. has been awarded as a sub-contractor for the Transportation and Installation Works for the Wellhead Platform Jacket and Topside (Campaign 1) for Kasawari Gas Development Project by Heerema Marine Contractors.

The scope of work for this contract comprises project management, procurement and subcontract as well as engineering works which includes reviewing of lift point design, design and supply of rigging, review of grouting system, pile grippers and installation aids.

The works are expected to be completed by second quarter of calendar year 2021.

CONTRACT FOR THE PROVISION OF MARINE SITE INVESTIGATION AND PIPELINE ROUTE SURVEY SERVICES FOR BESTARI FIELD FROM PETRONAS CARIGALI SDN BHD

Sapura Geosciences Sdn. Bhd. has received a Letter of Award from PETRONAS Carigali Sdn. Bhd. for the provision of Marine Site Investigation and Pipeline Route Survey Services for Bestari Field.

The contract scope of work includes marine site investigation and pipeline route survey services for Bestari Field, offshore Malaysia. The works are expected to be completed by Q2 FY2022.

CONTRACT FOR THE PROVISION OF MAINTENANCE EXECUTION OF GAS TURBINES, COMPRESSORS AND RELATED EQUIPMENT IN PETRONAS LNG COMPLEX FROM MALAYSIA LNG SDN BHD

Sapura Baker Hughes TPS Sdn. Bhd. (formerly known as Sapura GE Oil & Gas Services Sdn. Bhd.), a joint venture company between Sapura Services Sdn. Bhd., a wholly-owned subsidiary of Sapura Energy and Baker Hughes Energy Systems (Malaysia) Sdn. Bhd. (formerly known as GE Power Systems (Malaysia) Sdn. Bhd.) has been awarded by Malaysia LNG Sdn. Bhd. a contract for comprehensive maintenance of Baker Hughes-supplied turbomachinery equipment under a long-term service agreement.

The contract is for a duration of 9.5 years commencing from 1st February 2021.

Drilling:

Brunei

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

Sapura Drilling Sdn. Bhd. has secured a contract extension for its semi-submersible tender assisted drilling rig, “Sapura Pelaut”, from Brunei Shell Petroleum Co. Sdn. Bhd..

The contract extension covers a firm period of one hundred and forty-five (145) days commencing April 2021, in Bruneian waters.

FINANCIAL EFFECTS

The Contracts announced herein will have no effect on the issued capital of the Company and is expected to contribute positively towards the earnings of Sapura Energy Berhad and its subsidiaries (“the Group”) for the relevant financial periods within the duration of the Contracts.

RISK FACTORS

Risk factors affecting the Contracts including execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic, operational and commercial impacts of COVID-19 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 of the Contracts herein.

DIRECTOR’S STATEMENT

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

This announcement is dated 10 February 2021.