Swiber Holdings Limited (Swiber or together with its subsidiaries, the Group), an integrated construction and support services provider to the offshore oil and gas industry, announced Monday its first series of contract wins just beginning of the new year. The Group has clinched five sizeable contracts totaling approximately $235 million.
Three of these contract wins, which amounted to approximately $145 million, were awarded to the Group for works that will be executed in Latin America and Southeast Asia. The remaining two contract wins, which aggregated to approximately $90 million, were awarded to Swiber’s associate company and joint venture company, and are for services that will be executed in Southeast Asia. These contracts will commence immediately and are expected to be completed in next 2 years.
Commented Francis Wong, group CEO and president of Swiber, “We are pleased to begin 2014 on a strong note. Swiber continually endeavors to better execute our projects, increasing our safety profile, being on time and on budget. This proven ability and capacity in integrated construction and support services in the offshore oil and gas industry, coupled with our unwavering commitment to excellence, continues to be recognized by the industry.”
Market observers estimate that global exploration and production (E&P) spending is expected to see another record high of $723 billion in 2014, 6 percent higher than the previous year. In Latin America, despite a dip in capital spending by Petrobas, the region is expected to see a double-digit gain in spending. Oil majors such as Petroleos de Venezuela, S.A. (PDVSA) and Pemex could increase their E&P spending by 50 percent and 14 percent from the previous year, respectively.
Separately in Southeast Asia, market observers noted that Southeast Asia holds about 60.92 billion barrels of oil equivalent (boe) in commercial and technical oil and gas reserves, while total yet-to-find volume is estimated at 14.6 billion boe, of which liquids comprise 5.5 billion boe and gas 9.1 billion boe. Myanmar, Indonesia, Vietnam and Malaysia are some of the countries in Southeast Asia targeted by offshore oil and gas majors.
"In terms of industry prospects, the potential in Latin America and Southeast Asia is bright, and Swiber, with our long-standing and established networks in these regions, is in an ideal position to ride on this wave. As we step up our efforts in bidding for the growing E&P work at these locations, we are optimistic of a sustained smooth flow of success.”
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