Sapura Energy unit gets Mubadala Petroleum contract

SAPURA Energy Bhd’s whollyowned unit, Sapura Fabrication Sdn Bhd, has secured a contract from Abu Dhabi’s Mubadala Petroleum for works on Block SK320 – Pegaga Development Project offshore Sarawak.

The company said the scope of the works comprised engineering, procurement, construction, installation and commissioning of the offshore integrated central gas processing platform facility in Sarawak.

“The works are expected to be completed by third quarter of 2021,” it said in a filing to Bursa Malaysia yesterday.

Sapura Energy said the contract would have no effect on its issued share capital and was expected to contribute positively towards the earnings of the group for the financial year ending Jan 31, 2019 and the financial periods thereafter within the duration of the contract.

In a separate statement, Sapura Energy President and Group Chief Executive Officer Tan Sri Shahril Shamsuddin said the contract was the company’s sixth since the beginning of this year. “It’s a good start for us. We are proud to be working with a highly respected company such as Mubadala Petroleum and supporting its first development in Malaysia.

“Sapura Energy believes that the increased capital spending by oil and gas firms is an indication that the industry is making a gradual shift towards better times amidst renewed optimism,” he said.

The five contracts awarded to the company earlier this year were from Petronas Carigali Sdn Bhd, Hess Exploration and Production Malaysia BV, Malaysia Marine and Heavy Engineering Sdn Bhd, and Mumbai Port Trust, bringing a combined value of nearly RM3 billion thus far.

In February this year, it secured five contracts (via its whollyowned unit) with a combined value of approximately RM905 million.

Mubadala Petroleum is the operator of Block SK320 with a 55 per cent interest, while PetronasCarigali holds 25 per cent and Sarawak Shell Bhd, 20 per cent.