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Sapura Energy, Petra, Dayang, Carimin among frontrunners for major contracts
MAJOR modification, construction and maintenance (MCM) jobs from Petroliam Nasional Bhd (Petronas) worth RM5 billion to RM6 billion are expected to flow in soon after several small jobs were awarded recently.
Sapura Energy Bhd, Petra Energy Bhd, Dayang Enterprise Holdings Bhd, Carimin Petroleum Bhd, Deleum Bhd and Icon Offshore Bhd have been tipped as frontrunners for the tender jobs available for local industry players, according to sector analysts.
The research firms agree that the new round of MCM contracts would be split into six packages, with Sarawak’s portion, at an estimated RM1.5 billion, being the biggest.
Petronas was supposed to have awarded the five-year MCM contracts by the second quarter of this year.
To recap, the first three winners were Dayang, Carimin and, most recently, Deleum.
Dayang Enterprise won the RM800 million topside maintenance services contract. The company’s total revenue recognised had widened to RM1.4 billion due to additional work scope.
Carimin secured a contract on October 2 related to topside structural maintenance, workover preparation and facilities improvement, while Deleum, through its 60 per cent-owned subsidiary Deleum Primera Sdn Bhd, won a Petronas Carigali Sdn Bhd contract to provide MCM services.
The other contenders expected to be awarded the remaining jobs are Petra Energy, Icon Offshore and SapuraKencana Pinewell Sdn Bhd.
Malaysia Petroleum Resources Corporation (MPRC) said a period of adjustment across the oil and gas (O&G) industry value chain was expected as it adapted to the “new normal”.
“There is no running away from the fact that the O&G industry will continue to face challenges from the low oil price environment.
“We foresee a period of adjustment across the O&G industry value chain. However, Malaysian O&G services and equipment (OGSE) players have demonstrated higher levels of resilience during the downturn compared to their international peers.”
MPRC said in this respect, Malaysia was well-poised to continue being the Southeast Asian hub.
“The ‘lower forever’ outlook calls for OGSE companies to make swift improvements in operational and cost efficiencies, including the need to be competitive by increasing their productivity through scale or technology,” it added.
The major slice of the deals is expected to trickle down to the rest of the local players, thereby giving a much-needed boost to the industry. The players can better plan their resources and manpower in the next five years.
Last month, Petronas shared a “3+2 years” work programme with its registered companies for better visibility and planning, which will be an annual exercise.
For the first time, it shared information such as the number of rigs required in the next three years, as well as the number of vessels needed.
President and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin had said the move would motivate more consolidation in the industry.
“We hope we can reshape the whole industry so that in the future, they will be competitive, resilient, bigger in size; all the prerequisites for Malaysian companies to venture overseas,” he said in an interview with NST Business recently.