INTRODUCTION

Sapura Energy Berhad (“Sapura Energy" or the “Company”) is pleased to announce that its wholly-owned subsidiaries and joint venture have been awarded contracts/contract extensions with a combined value of approximately RM840 million.

Details of each of these contracts/contract extensions (collectively referred to as “Contracts”) are as summarised below:

Engineering & Construction:

Mexico

AWARD OF CONTRACT FOR ENGINEERING, PROCUREMENT, CONSTRUCTION AND INSTALLATION OF AMOCA PLATFORM BY ENI MEXICO S. DE R. L. DE C.V.

Sapura Energy Mexicana S.A.P.I. de C.V. has been awarded a contract for the engineering, procurement, construction and installation for the Eni Mexico S. de R. L. de C.V. Amoca Project – Offshore Block Area 1 in Mexico.

The contract scope of work comprises the transportation and installation of Amoca Platform and the pipeline and subsea cable scope of work interconnecting the Amoca and Mizton platforms and Floating Production Storage and Offloading (FPSO).

The works are expected to be completed by Q4 FY2022.

Brazil

EXTENSION OF CONTRACT FOR THE CHARTER AND OPERATIONS OF PIPE LAYING SUPPORT VESSEL “SAPURA ESMERALDA” FROM PETROLEO 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 twelve (12) months extension for the charter and service contracts respectively by Petrobras in Brazil.

The contract scope of work comprises the provision of services and charter for installation and recovery of flexible pipes, by utilizing Sapura Esmeralda in the Brazilian waters. Sapura Esmeralda shall perform all operations required for the installation of the 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 2500 meters.

The existing contract is expected to complete by April 2021 and the twelve (12) months extension will commence immediately after the duration of the original contract of Sapura Esmeralda ends.

Drilling:

Ivory Coast

AWARD OF CONTRACT FOR TENDER ASSIST DRILLING RIG “SAPURA BERANI” BY FOXTROT INTERNATIONAL LDC.

Sapura Drilling Holdings Limited has been awarded a contract for the provision of its Tender Assist Drilling Rig “Sapura Berani” services by Foxtrot International LDC.

The contract scope comprises the provision of semi tender-assist drilling rig services for 3 wells commencing in Q1 FY2022 for a period of 9 months offshore Ivory Coast plus one option of one well extension.

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 Berhad and its subsidiaries (“the Group”) for the financial year ending 31 January 2021 and the financial period thereafter within the duration of the Contracts period.

RISK FACTORS

Risk factors affecting the Contracts include 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.

DIRECTOR’S 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 17 September 2020.