INTRODUCTION

Sapura Energy Berhad (“Sapura Energy" or the “Company”) is pleased to announce that its wholly-owned subsidiaries and joint venture in Engineering and Construction, and Drilling have been awarded contracts with combined values of approximately RM2.7 billion, of which RM176 million contributed by its joint venture company.

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

Engineering & Construction:

Subsidiary and Joint Venture

Brazil

AWARD OF CONTRACT FOR SUPPLY FOR PLSV/CSV/BASE/FLEXIBLES AND OTHER SERVICES, BS-4 ATLANTA FROM ENAUTA ENERGIA SA

Sapura Energy Do Brasil (“SEDB”) and its consortium partner, Sapura Navegação Marítima S.A. (“SNM”) have been awarded an EPCI SURF contract by Enauta Energia SA for the Atlanta’s Full Field Development in the Santos Basin, offshore Brazil which expects first oil in 2024.

The contract scope of work includes the installation of new subsea manifolds, subsea pumps, flexibles, jumpers and umbilicals for three (3) new wells, disconnecting the existing Early Production System (“EPS”) and re-routing existing flexibles and umbilicals to the FPSO Atlanta.

The contract has commenced in Q1 calendar year 2022 for a duration of 33 months.

Malaysia

AWARD OF CONTRACT FOR PROVISION OF TRANSPORTATION AND INSTALLATION FOR PHASE 4A OFFSHORE FACILITIES FROM HESS EXPLORATION & PRODUCTION MALAYSIA B.V.

Sapura Offshore Sdn. Bhd. has been awarded the provision of transportation and installation contract by Hess Exploration And Production Malaysia B.V.

The contract scope of work includes transportation and installation of a 51km pipeline, three (3) wellhead platforms, two (2) flexible pipelines and subsea facilities at North Malay Basin.

The contract has commenced in Q2 calendar year 2022 for a duration of eight (8) months excluding warranty period.

Drilling:

Subsidiary

Thailand

AWARD OF CONTRACTS FOR OFFSHORE DRILLING RIG SAPURA T-10, T-11 AND T-12 BY PTTEP ENERGY DEVELOPMENT COMPANY LIMITED (“PTTEP”)

Sapura Drilling Asia Limited has been awarded new contracts from PTTEP for the provision of tender-assist drilling rigs Sapura T-10, T-11 and T-12.

The new contracts will commence in Q3 calendar year 2022.

Malaysia

AWARD OF CONTRACT FOR OFFSHORE DRILLING RIG SAPURA T-9 BY EXXONMOBIL EXPLORATION AND PRODUCTION MALAYSIA INC. (“EMEPMI”)

Sapura Drilling Asia Sdn Bhd has been awarded a new contract from EMEPMI for the provision of tender-assist drilling rig Sapura T-9.

The new contract will commence in Q3 calendar year 2022 for fourteen (14) wells.

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 and its subsidiaries (“the Group”) for the relevant financial periods within the duration of the Contracts.

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, 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.

DIRECTORS’ 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 16 June 2022.