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Sapura Energy Berhad

09/30/2021 | Press release | Distributed by Public on 09/30/2021 03:49

OTHERS

INTRODUCTION

Sapura Energy Berhad ("Sapura Energy" or the "Company") is pleased to announce that its indirect wholly-owned subsidiary and joint venture in Engineering and Construction (E&C) have been awarded contracts with combined values of approximately RM942.0 million and RM1.7 billion respectively.

Details of each of these contracts (collectively referred to as "Contracts") are as summarised below:

Subsidiary:

Australia

AWARD OF CONTRACT FOR SPARTAN & SPAR HALYARD UMBILICAL REPLACEMENT ("SHUR") TRANSPORTATION AND INSTALLATION WORKS FROM SANTOS WA NORTHWEST PTY LTD.

Sapura Projects Pty Ltd has been awarded with a contract for Spartan & SHUR Transportation and Installation Works by Santos WA Northwest Pty Ltd.

The scope of work comprises installation of clamps and J-tubes on the John Brookes wellhead platform followed by installation of two (2) subsea umbilicals and one (1) flowline, along with mattresses at crossings. The work is to be performed over two (2) campaigns in Q1 and Q4 calendar year 2022 and are expected to be completed by Q4 calendar year 2022.

AWARD OF FEED CONTRACT FOR THE DESIGN, CONSTRUCTION AND INSTALLATION FOR THE WELLHEAD PLATFORM IN THE DORADO PROJECT FROM SANTOS WA NORTHWEST PTY LTD.

Sapura Projects Pty Ltd has been awarded by Santos WA Northwest Pty Ltd. with a contract for FEED for the Design, Construction and Installation of the Wellhead Platform for the Dorado project in the Bedout Sub-basin, offshore Western Australia.

The contract scope of work includes design, construction, engineering, fabrication, transportation and installation of the wellhead platform. The works are expected to be completed by Q1 calendar year 2024.

Joint-Venture:

Brazil

AWARD OF CONTRACT FOR THE PROVISION OF SERVICES AND CHARTER OF PIPE LAYING SUPPORT VESSELS "SAPURA DIAMANTE" AND "SAPURA TOPAZIO" FROM PETRÓLEO BRASILEIRO S.A. - PETROBRAS

Sapura Navegação Marítima S.A., a wholly-owned subsidiary of Seabras Sapura Participações S.A., a joint venture company between Sapura Offshore Sdn Bhd and Seabras Serviços De Petroleo S.A., a subsidiary of Seadrill Limited, has been awarded with Charter and Service Contracts for the operation of the pipe laying support vessels "SAPURA DIAMANTE" and "SAPURA TOPAZIO" ("PLSVs") by Petrobras.

The contracts scope of work includes the provision of services and charter of installation and recovery of flexible pipes, by utilizing the PLSVs in the Brazilian waters. The PLSVs shall perform all operations required to the installation of flexible pipes, electric-hydraulic umbilical and power cables, new or used, such as loading, unloading, laying, connection between spans, vertical connection (first and second end) on submarine equipment, installation of submarine equipment and hydrostatic test, in a maximum water depth of 3000 meters.

The contract duration for Sapura Diamante and Sapura Topazio is 3.5 years and they will commence work on 1 October 2021 and 31 January 2022, respectively.

FINANCIAL EFFECTS

The Contracts announced herein will have no effect on the issued capital of the Company and is expected to contribute positively towards the earnings of Sapura Energy and its group of companies ("the Group") for the relevant financial periods within the duration of the Contracts.

RISK FACTORS

Risk factors affecting the Contract including execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic, operational and commercial impacts of COVID-19 and regulatory conditions. Notwithstanding, the Group has established a successful track record undertaking similar projects.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors and/or major shareholders of the Company and/or persons connected with them have any direct or indirect interest in the award of the Contracts herein.

DIRECTORS' STATEMENT

The Board is of the opinion that the acceptance of the Contracts is in the best interest of the Company.

This announcement is dated 30 September 2021.