Contracts flurry for SapuraKencana

Malaysian oilfield services provider SapuraKencana has today announced several new contracts and contracts extensions.

The contracts, worth $459 million in total, have been awarded to the company’s Fabrication, Hook-up and Commissioning division, Offshore Construction and Subsea Services division and Drilling division.

SapuraKencana’s Fabrication, Hook-up and Commissioning division scored the most lucrative batch of three contracts with various scope of works with a combined value of approximately $206 million.

Offshore Construction and Subsea Services division followed with three contracts worth around $151 million, while the company’s drilling branch received one contract award and one contract extension for the provision of offshore drilling rigs and services with a combined value of approximately $102 million.

Kencana HL wellhead platforms

SapuraKencana’s subsidiary Kencana HL (KHL), has won three contracts, first of which is for the construction and installation of two wellhead platforms for Petronas Carigali. The units will be deployed at Petronas’ Baronia and Tukau fields offshore Malaysia. The deliveries are expected to be completed in late 2018. The deal is worth RM480 million ($137.3 million).

Furthermore, under its second awarded contract, KHL will provide brownfield works for three offshore platforms jointly run by Thailand’s PTTEP and Malaysia’s Petronas.

The platforms MDPP, MDB and JKB, are located in Thai-Malaysia Joint Development Area (JDA), approximately 270 kilometers east of Songkhla in Thailand and 171 km north-east from Kota Baru in northern Malaysia.

Also, under its third contract, KHL will deliver a compression module to Petronas Carigali for the Angsi field, located of offshore Terengganu in the Malay basin area. The contract is expected to be completed by the fourth quarter of 2015. The contract value is approximately RM140 million ($40.3 million).

Construction and Subsea

SapuraAcergy Sdn. Bhd., a joint venture owned  by SapuraKencana and Subsea 7 S.A.has entered into a sub-contract with Heerema Marine Contractors Australia Pty Ltd. to provide of buoyancy tanks removal and disposal for the Chevron-operated Wheatstone LNG project, located in Wheatstone field, offshore Western Australia. The sub-contract is valued at approximately $18 million.

Additionally, SapuraAcergy has been hired by a subsidiary of French oil company Total, to build and install a wellhead platform, lower compression platform, pipelines and cables for a project offshore Myanmar. The deliveries, to be made for the Yadana field in Myanmar, are slated for completion in late 2016. The deal is valued somewhere between $120-$130 million.

Drilling for Foxtrot, Hess

Foxtrot international, an oil company based in based in Abidjan, Ivory Coast, has awarded a contract for Sapura Kencana Drilling’s ‘SKD Alliance’ semi-tender assist rig. Under the 400-days contract, the company will use the ‘SKD Alliance’ for development drilling offshore Ivory Coast. Foxtrot will have an option to extend the deal for three more wells, upon the expiration of the current contract. The contract is scheduled to start in February 2015.

Also, Hess Corporation, a U.S. based exploration and production firm, has decided to extend the charter for the ‘West Esperanza’ drilling rig, currently deployed in Equatorial Guinea. The rig will stay in the West African country’s waters for three more months after the current contract expires in September 2015.