SapuraKencana a potential frontrunner in India, Mexico jobs

KUCHING: SapuraKencana Petroleum Bhd (SapuraKencana) is poised to land two jobs respectively in India and Mexico, potentially totalling about US$1.5 billion.

For the India job, AmResearch Sdn Bhd (AmResearch) understood that SapuraKencana, through its wholly-owned subsidiary TL Offshore Sdn Bhd, has put in the lowest bid – between US$273 million and US$291 million – among four contenders interested in a portion of the ONGC’s Mumbai High South (MHS) phase three redevelopment project to the tune of US$200 million to US$300 million.

Likely frontrunner and localbased Larsen & Toubro Ltd has put in a higher bid of US$390 million, while Abu Dhabi-based National Petroleum & Construction Co and US-based McDermott have put in bids of US$471 million and US$406 million, respectively.

“SapuraKencana may also face stiff competition if Singapore’s Swiber Holdings Ltd is successful in resubmitting its bid after it had failed to do so earlier due to technical issues,” opined the research house.

“The MHS project is speculated to require a new 12-slot well-head platform and two nine-slot platforms with clamped-on structures to be installed. The job would also entail the laying of pipes totalling 115.9km in 15 segments.

“Details are scarce for the Mexico job, except that the deepwater and shallow structure contracts may be worth up to US$400 million.”

If successful, this would be the first major contract win for the year. The group’s orderbook stood at RM25.7 billion as at March 2015 and remains the largest within the O&G sector.