Singapore’s Swiber Clinches USD 830 mln Worth of Contracts

Singapore's Swiber Clinches USD 830 mln Worth of Contracts

Swiber Holdings Limite , an integrated construction and support services provider to the offshore industry, announced that it has secured a series of significant awards totaling to over US$830 million.

These awards include offshore construction projects and vessel chartering services in the Asia Pacific region. In addition, it has received a letter of award (“LOA”) through its JV Company to charter out a spread of support vessels in the Middle East.

Swiber’s contract wins in the Asia Pacific region include projects for engineering, procurement, and installation of pipelines, umbilicals, and subsea systems; and transportation and installation of wellhead structures and associated pipelines. In addition, the Group will provide vessel chartering services in the region. Work for these projects will commence immediately this year and will carry on into 2014.

Concurrently, the Group has also secured a charter LOA for the provision of a spread of support vessels for a major oil producer in the Middle East through its JV Company, with a committed period of three years and an additional option period of two years. The contract period will commence immediately and is expected to continue until 2017, if all options are exercised.

Francis Wong, Group Chief Executive Officer and President of Swiber said: “Winning these sizeable contracts reiterates the industry’s confidence in Swiber as a world class solutions provider. With a large asset base, coupled with our strong position of providing a full suite of integrated services, we have achieved an eminent position amongst global offshore oil and gas players and remain committed to break new grounds.

“These wins attest to our in-depth knowledge of executing offshore works in multiple regions, our top-notch vessel fleet and unparalleled workforce capabilities, built upon a time-tested track record of having successfully executed offshore  operations in the regions of Asia Pacific and the Middle East. We are definitely at the right place at the right time, and we are confident that we will continue to remain as the preferred offshore player for EPCI work.

“Our efforts in nurturing new markets are coming to fruition. We are confident that this is only the start. We will continue to broaden our network in the oil and gas industry in these regions to enable us to bid for more offshore projects. We certainly look forward to further investment opportunities in these exciting and growing markets.”

“With our enlarged vessel fleet, we will have greater flexibility in resource planning. Above all, establishing a critical mass, both in terms of  vessel fleet size as well as the range of supporting services, is essential, as we expand our presence in our existing markets and make inroads into new ones, riding on the rising demand in the oil and gas sector.”

This series of wins came close on the heels of a successful US$175 million bid made jointly with its consortium partner, PT SMOE Indonesia, a wholly-owned subsidiary of a major marine and offshore engineering group, Sembcorp Marine, for offshore construction work.

Mr. Wong said, “Without a doubt, Swiber is on a winning streak. We are clinching larger and larger contracts in the markets of Asia and the Middle East and breaking into new frontiers such as the Gulf of Mexico. Indeed, we have a good spread of projects over the next few years, which will allow the Group to advance ahead on a solid footing in the exciting offshore oil and gas industry.”

In a May report by the International Energy Agency (IEA), oil demand from emerging countries this year will offset lower consumption by advanced economies in the OECD. Global demand growth for oil would gradually accelerate throughout 2012 from close to zero in the first quarter to an expansion of 1.2 million barrels per day by the fourth. Of the four biggest markets – China, the US, Europe and Japan – China is expected to maintain its global dominance for oil  demand growth.

Wong concluded, “We are excited about the rapid velocity of offshore tendering activities in these regions. Having secured our place in the big league, we will continue to ride on the vigorous momentum in the industry to capture bigger ventures and greater opportunities.”

[mappress]
Source: Swiber, June 6, 2012