Scomi Wins Contracts from BP and OGDCL
Scomi Group Bhd has secured two major contracts from BP in Indonesia and OGDCL in Pakistan, worth over RM43 million. Both contracts are for a period of 2 years. The contract with BP is for the provision of Drilling Waste Management services for BP's operation in Tangguh Indonesia. The contract with OGDCL is for the provision of Drilling Fluids in Pakistan.
The contracts were awarded to Scomi's Oilfield Services Division ("OSD"), which Scomi has proposed to list on the Singapore Exchange Securities Trading Limited.
"This is not the first time our group has worked with both BP in Indonesia and OGDCL in Pakistan, and we are pleased with the development of working with them again." said Shah Hakim Zain, Scomi's Group Chief Executive Officer.
"Our overseas business accounts for approximately 80% of our revenue. Our customers are widely spread throughout 35 countries, ranging from the oil majors such as BP, Shell, ExxonMobil, to national oil companies such as Statoil in Norway, PdVSA in Venezuela, Aramco in Saudi Arabia, as well as other independent oil companies such as Kerr McGee in the UK, Devon Energy and Occidental in the USA." continued Shah Hakim.
This year, Scomi expects to register more than 60% growth in its overseas business. In addition to the recent contracts that it secured from BP and OGDCL, in the last few weeks Scomi's OSD continued to secure overseas contracts including approximately RM4 million contract with Megion in Russia, approximately RM4.3 million contract with PetroChina East Java in Indonesia and approximately RM5.8 million contract with Cairn Energy India Pty Ltd in India.
"Our growth in the overseas business has been very encouraging. With our worldwide operation servicing various customers, we mitigate the risks of relying on any particular customer. Petronas today accounts for approximately 6% to 9% of our business, comparable to that of our large customers Shell and Aramco." concluded Shah Hakim.
Today, OSD is believed to be the fourth largest among the global industry players. OSD has also consistently increased its market share internationally and today it is a recognized leader in its sector in Norway, Pakistan, Malaysia, Venezuela and the North Sea. The OSD is also focusing on new growth markets such as the USA, Canada, Russia and the Caspian Sea.
For the Energy Logistics business, Scomi's largest operations are in Indonesia and Singapore. It has recently expanded its operations to the Middle East.
Scomi is involved in the energy related industry with four core businesses of Oilfield Services, Energy and Logistics Engineering, Energy Logistics and Production Enhancement.
Operates 32 Offshore Rigs
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