SapuraKencana secures $700M in drilling contracts

The Board of Directors of SapuraKencana Petroleum Berhad has announced that its wholly-owned drilling subsidiaries have been awarded three new contracts and a contract extension worth approximately $700 million.

Petcon (Malaysia) Sdn Bhd, a wholly-owned subsidiary of SapuraKencana, has been awarded two contracts by Petronas Carigali Sdn Bhd (“PCSB”) for the provision of its tender assist drilling rigs, namely SKD T-9 and SKD T-10.

PCSB intends to utilise SKD T-9 and SKD T-10 for its development drilling campaign offshore Malaysia. The contract for SKD T-9 is for a period of five years with an option to extend for a further two years. This contract will be effective from July 2014 to June 2019.

The contract for SKD T-10 is for a period of three years with an option to extend for a further two years. This contract will be effective from August 2014 to July 2017.

Also, SapuraKencana Drilling Asia Limited, a company incorporated in Hong Kong and wholly-owned by SapuraKencana, has been awarded a contract by Chevron Thailand Exploration And Production Limited  for the provision of offshore drilling rig and services by its tender assist drilling rig “SKD T-18”. Chevron intends to utilise SKD T-18 for its offshore development drilling campaign in Thailand.

The contract for SKD T-18 is for a period of five years and will be effective from June 2014 to May 2019.

Contract Extension

Seadrill Jaya Ltd, a company incorporated in Bermuda and wholly-owned by SapuraKencana, has accepted an extension to its contract with BP Trinidad & Tobago LLC (“BP T&T”) for the provision of offshore drilling rig and services by its tender assist drilling rig “SKD Jaya” (“SKD Jaya”).

BP T&T intends to utilise SKD Jaya for its offshore development drilling campaign in Trinidad & Tobago.

The extension of the contract for SKD Jaya is for a period of one year and shall be effective from August 2014 to July 2015.

In total, the Contracts and Contract Extension are valued at circa USD700 million (RM2.3 billion).

“These latest, big business wins, which come on top of approximately RM2.5 billion in new contracts and extensions already won so far in 2014, will contribute positively to SapuraKencana Petroleum’s future earnings,” said SapuraKencana Petroleum’s President and Group CEO, Tan Sri Dato’ Seri Shahril Shamsuddin, commenting on the new contracts.

“This new business further strengthens SapuraKencana Petroleum’s order book to RM27.4 billion and signifies the sustained faith and confidence our clients have in the Group’s capabilities and ability to deliver,” he added.

“In the past one year that the Group’s SapuraKencana Drilling division has been operating within the Group, it has successfully and on a sustained basis delivered a steady stream of new business for the Group. We expect to see this grow further,” he added.

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