Malaysia's Sapura Energy Lands $303 Million in Contracts for Offshore Projects

Thursday, June 8, 2023

Malaysia's Sapura Energy said Thursday it had, between December 2022 and May 2023, secured ten contracts worth around 1.4 billion Malaysian ringgit (currently around $303 million) across the Asia Pacific and Atlantic regions.

The contracts were secured across its Engineering and Construction (E&C), Drilling, and Operations & Maintenance (O&M) business segments.

The E&C business segment secured RM979 million in contract wins, Drilling RM352 million, while O&M secured RM34 million, amounting to a combined value of about RM1.4 billion. 

More than 70 percent of the combined contract value is from projects outside of Malaysia, the company said.

Sapura Energy Group CEO Anuar Taib said: “Deploying some of our assets to new regions enabled us to secure new clients as well as overcome limitations brought on by financial constraints. We are also grateful for the trusted partnerships we have established with new and existing clients, who have continued to seek our solutions to deliver their projects.” 

E&C Business Segment

Sapura Offshore Sdn Bhd and Sapura Energy DMCC have been awarded a contract by ENI Congo to provide offshore transportation and installation (T&I) services in the Republic of Congo. 

The contract will take effect immediately for a duration of one year. The T&I project is scheduled for completion in the fourth quarter of calendar year 2023. 

Also, Sapura Energy (Thailand) Limited has won two contracts in Thailand for offshore wellhead platform and pipeline installation and removal activities. The first contract, awarded by Chevron Thailand Exploration and Production Ltd and Chevron Offshore (Thailand) Ltd, is a work order for the Year 2023 Pipelines Transportation, Installation, and Removal Campaign in Thailand. 

The scope of work comprises engineering, procurement, construction, installation, and removal of wellhead platforms and pipelines. The project is expected to be completed by end of calendar year 2023. 

The second contract was awarded solely by Chevron Thailand Exploration and Production Ltd. This contract encompasses services such as engineering, procurement, prefabrication, and removal of subsea pipelines, as well as wastewater management. 

The project is targeted to be completed by end of calendar year 2023.

In Australia, Woodside Energy Ltd, an operator of Western Australia’s North West Shelf (NWS) Project, awarded Normand Sapura Pty Ltd a contract for the intervention and removal of a plug within the wellbore of the Tidepole TPA03 subsea well. 

The contract scope of work comprises the supply of an offshore vessel, equipment, and personnel to undertake all aspects of planning and execution of the intervention and removal works. The project is anticipated to be completed by the third quarter of 2023, pending all requisite approvals. 

In the E&C business, Sapura Project Pty Ltd secured a contract in New Zealand from the Ministry of Business, Innovation, and Employment for the Tui Field Decommissioning Program. 

The contract entails the recovery of four mid-water arches, its gravity bases, and tethering chains from the Tui field, and will be offloaded to a laydown area at Port Page 3 of 5 Taranaki for processing and removal. The project is scheduled to take place over two weeks in the period of December 2023 to March 2024. 

Drilling Business Segment 

Sapura Drilling has received multiple contracts to provide semisubmersible tender-assist drilling (TAD) rig services in Malaysia. 

The first contract, awarded by Vestigo Petroleum, involves the utilization of Sapura Berani semi-submersible self-erecting tender assisted drilling for the Larut Complex Late Life Redevelopment Project. The estimated contract duration is seven months, and the offshore campaign is expected to be completed in the fourth quarter of the calendar year 2023. 

Another contract was awarded by Sarawak Shell Berhad and Sabah Shell Petroleum Co Ltd (SSB/SSPC) for the utilization of Sapura Esperanza to drill two wells in the Timi Development Campaign, and one well in the F14 Infill Campaign. 

This contract is expected to end by the third quarter of calendar year 2023. 

Sapura Drilling was also awarded several other contracts of semi-submersible tender-assist drilling rig services for rigs Sapura Esperanza, Sapura Pelaut, and Sapura Alliance which is expected to complete latest by the fourth quarter of calendar year 2023. 

O&M Business Segment 

In the O&M business segment, Sapura Technology Solutions Sdn Bhd has secured a contract from PETRONAS Carigali Sdn Bhd (PCSB) for additional Field Service Engineer (FSE) services on a turnaround (TA) call-out basis, comprising commissioning and start-up of the KINEW Compressor Upgrading Project at PCSB-SBA Erb West Platform. 

The project is scheduled for completion in the fourth quarter of 2023, with an estimated duration of four months.

 Sapura Nautilus, Sapura Energy's subsidiary under the O&M business segment, was granted a contract from SapuraOMV Upstream (Sarawak) Inc to provide one dynamic positioning accommodation workboat vessel for E11R-B Host Tie-In Modification Works for year 2023 (WO53). 

The estimated duration of the contract is 19 weeks, with an additional four weeks extension option on a weekly basis. The contract is set to start in the second quarter of the calendar year 2023. The same subsidiary has also been awarded a contract from PCSB for the provision of anchor handling and tug supply services. 

The contract is expected to be completed in the fourth quarter of calendar year 2023.  

"In addition to the contract wins, the group’s E&C team is in the midst of negotiations with its clients to rescope certain ongoing contracts, following the changes made by its clients during project execution. These contracts are namely, the Engineering, Procurement, Construction, and Installation (“EPCI”) Contract for Salman, announced on September 27, 2019; the Offshore Process Platform (CPP & LQUP) Project for the Development of Kg Dwn 98/2 Nelp Block, announced on December 6, 2018; the EPCI for the Wellhead Platform in the Dorado Project, announced on September  30, 2021; and the EPCI for the SBM Pipeline Rejuvenation Phase II Project, announced on June 3, 2020.

Categories: Energy Vessels Engineering Industry News Activity Asia Africa Construction Vessel Offshore Drilling

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