Swiber's latest project marks its first ever deal with international oil giant, Brunei Shell Petroleum Company Sdn Bhd ("Brunei Shell"). Even more significantly, at a contract value of US$146.6 million, the project is also Swiber's single largest EPCIC contract to date, and the Group's maiden project in the thriving Brunei market.
Commencing in 2Q FY2007, Swiber expects to realize approximately US$70.5 million in 2007, and the remaining US$76.1 million in 2008.
"The new contract is a major development for the Group," said Raymond Goh, Swiber's Executive Chairman and Chief Executive Officer. "Apart from the earnings the contract will generate, the new win cements our position in the offshore EPCIC sector, and place Swiber in the league of the big players in the industry. It represents a great leap forward for Swiber to be a major service provider to the offshore oil and gas industry, particularly in the Asia Pacific region."
"This is our first contract win with Brunei Shell and marks an important milestone in our corporate history. The project has established the start of our relationship with the global oil giant and we believe this will set the stage for more future dealings to come. Notably, the contract comes with an option for extra work in 2009 and 2010 that will be part of the ongoing major project developments by Brunei Shell," added Goh.
Under the Letter of Intent ("LOI") awarded by Brunei Shell to Swiber's wholly owned subsidiary, Apecs Offshore Pte Ltd ("Apecs"), Swiber is to perform several EPCIC installations off the coast of Brunei.
As part of the scope of work of project, Swiber will provide services to Brunei Shell that will encompass engineering (in-house), project management as well as transportation and installation of offshore facilities including platforms, pipelines and sub-sea cables.
These installations are scheduled for 2007 to 2008 and cover three major projects, namely Pipeline Replacement, Mampak Development and Seria North Flank Development. The Pipeline Replacement project scope also includes fabrication of Rentis lines at Brunei Shell's yard at Telisai in Brunei and towing and installing them out to site.
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