Swiber Clinches $146.6M Letter of Intent from Shell

Swiber Holdings Limited, a niche service provider to the offshore oil and gas industry, has scored several historic milestones for itself in its latest offshore Engineering, Procurement, Construction, Installation and Commission (EPCIC) project in Brunei.

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.

For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Diesel Mechanic for Williston, ND!
Expertise: Mechanic
Location: Williston, ND
Project Manager
Expertise: Engineering Manager|Project Engineer
Location: Orlando, FL
Branch Manager for Heavy Equipment Dealership in Mississippi
Expertise: Facilities Management|Mechanic
Location: Mississippi, United States, MS
search for more jobs

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours