Swiber bags $215M in new contracts

Swiber Holdings, an offshore construction services provider to the oil and gas industry, has secured three new contracts with a total value of $215 million in the Middle East and Southeast Asia regions.

Swiber reported on Tuesday it was awarded an Engineering, Procurement, Construction and Installation (EPCI) contract from a ‘European oil major’ to perform pipeline replacement work in Qatar, marking the Group’s first offshore construction project in the Middle East.

The group has started the engineering phase of this project which is scheduled for completion in the third quarter of 2017.

“This job is for a repeat customer with whom we have worked closely on numerous projects across the globe. It is a testament of our proven experience and execution capabilities that the customer is once again entrusting Swiber with this project in Qatar,” said Darren Yeo, Deputy Group CEO of Swiber.

Swiber recently also won new contracts for a further two projects in Myanmar and Vietnam.

The group is participating in a consortium that will carry out EPCI of two wellhead platforms, associated pipelines and tie-ins for a project off the coast of Myanmar for a major Southeast Asian oil and gas company. This project starts immediately and is expected to be completed by the first quarter of 2018. The customer has options to award an additional two wellhead platforms.

The third contract involves the provision of transport and installation services for a full field development project in the waters off Vietnam. The Group has recently started work on this job, which is targeted for completion in the third quarter of this year.

“While Southeast Asia has seen a slowdown in offshore oil and gas activities over the past couple of years, it remains an important market for Swiber as our projects in this region contributed $117.1 million or 14.1% of the Group’s revenue in 2015. Our project wins in Myanmar and Vietnam will solidify the Group’s established market presence in the region,” said Yeo.

These latest contracts have lifted Swiber’s order book to around $1.2 billion. The $100 million EPIC contract awarded to Swiber in February 2016 has been retendered by the customer due to changes in the project work scope and schedule. Swiber said it will soon be submitting its bid for this project.

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