Sapura Energy to back its long-term sustainability with sale of heavy-lift pipelayer
Malaysian oilfield services provider Sapura Energy has signed a Memorandum of Agreement (MOA) with Safeen Feeder Company – Sole Proprietorship, part of the Abu Dhabi Ports Group of Companies, for the disposal of its pipelaying and crane vessel Sapura 3000.
The 2008-built Sapura 3000 is a versatile heavy-lift pipelaying vessel, equipped with a 3,000 short tonnes revolving mast crane, capable of executing deep and shallow water projects.
Sapura Energy’s wholly-owned subsidiary Sapura 3000 entered into the MOA for a total cash consideration of $71.5 million.
According to the company, the price of the vessel was based on a willing buyer-willing seller basis, after conducting an international Request for Proposal process.
The proposed asset disposal exercise is said to be part of the group’s Reset plan, which focuses on Sapura Energy’s long-term sustainability by improving its liquidity position, streamlining its operating model and providing greater flexibility for strategic growth.
The generated cash will be utilized for working capital and to reduce the borrowings of the group.
The sale of the vessel is expected to be completed by the middle of July.
Sapura Energy announced in December 2021 that it is facing short-term cash flow and liquidity issues, primarily exacerbated by the unprecedented Covid-19 pandemic, and is taking actions to resolve this by expediting claims and commercial settlements with clients, as well as discussing with vendors, and negotiating with lenders for support through existing working capital facilities.
News reports and speculations about Petronas buying a significant stake in Sapura Energy arose in mid-March. However, the Malaysian state-owned energy giant denied the reports, stating that it has always been and will continue to be strictly guided by an established framework for any investment or divestment consideration.
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