Malaysia's SapuraKencana Petroleum Berhad reported Thursday its entry into the offshore oil and gas services market in Europe, securing a $126 million (MYR 510 million) contract for the Trans Anatolian Natural Gas Pipeline (TANAP) from TANAP Dogalgaz Iletim A.S.
The company's unit SapuraKencana TL Offshore Sdn Bhd (SKTLO) received the engineering, procurement, construction and installation (EPCI) contract for offshore pipelines and fiber optic cables for TANAP, located offshore Dardanelles Strait in the Sea of Marmara. TANAP, a natural gas pipeline project linking Europe and Asia, supplies natural gas from the Southern Gas Corridor project in Azerbaijan through Georgia and Turkey and onwards to Europe.
Work on the project is scheduled to commence in the third quarter of 2016, with completion planned for the third quarter of 2018.
"This contract win demonstrates that our transformation and strategies are continuing to enhance our competitiveness globally. Our cost reduction efforts and increased operational effectiveness have driven this enhanced competitiveness that has helped us to secure our latest wins in Mexico and TANAP, both totalling just under $246.6 million (MYR 1 billion). These wins will contribute positively to the Group’s performance,” Shahril Shamsuddin, president and Group CEO of SapuraKencana, said in the press release.
The Malaysian company has successfully secured a total of $764.5 million (MYR 3.1 billion) of new contract wins in the current financial year.
With global oil prices remaining sluggish and capital spending staying low, SapuraKencana is likely to stick with the plan to executive its strategic initiatives to transform the company into a more cost-competitive market leader, an industry source told Rigzone.
"The Group continues to focus on growing and replenishing the orderbook in key markets, rebasing its costs and increasing operational efficiency," SapuraKencana said June 28 in the release of its quarterly results ending April 30.
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