The Group announced that its wholly]owned subsidiary, Swiber Offshore Construction Pte Ltd, has successfully been awarded the LOI for EPCIC (Engineering, Procurement, Construction, Installation and Commission) work in Mumbai, India, from one of its long]standing clients, BG Exploration and Production India Limited ("BG India"). The LOI is the Group's maiden EPCIC project win in the thriving Indian market.
Swiber is showing sustained momemtum at winning large, major contracts. The latest project is the Group's second single largest EPCIC contract to]date. The largest EPCIC contract, at US$146.6 million, was awarded to Swiber by Brunei Shell Petroleum Company Sdn Bhd ("Brunei Shell") in February 2006 for EPCIC works in Brunei. And in December 2007, Swiber was awarded a contract extension from Brunei Shell, which brought the total value of contracts awarded from Shell Brunei to US$200 million.
Under the terms of the latest LOI, Swiber's project scope includes the design, engineering, procurement, fabrication, surveys, load out, tie]down/sea fastening/sail out, transportation, installation, hook up and pre]commissioning of various facilities situated in the Arabian Sea, off the west coast of India, near Mumbai. The project work will commence in the first quarter of 2008, with completion targeted for the second quarter of 2009.
This latest agreement extends the existing relationship between Swiber and BG India. The two companies have had business dealings since November 2006 when Swiber procured its first offshore marine support charter contract in India worth US$5.75 million. Since then, Swiber, through its joint venture, Swiwar Offshore Pte Ltd, has won a succession of charter contracts with BG India in 2006 and 2007 worth a total of US$42 million.
"Over the years, Swiber has enjoyed a long]standing relationship with BG India," said Mr Raymond Goh, Swiber's Executive Chairman and Chief Executive Officer. "The recurring projects we have with BG India points to the excellent business relationships we have established. But what pleases me more is that we are able to extend the range of Swiber's products and services offered to BG India. From our initial chartering contracts, we have expanded our scope of work to include EPCIC services. We look forward to expanding our long]standing, successful relationship with BG India."
India has been identified as a key growth market for Swiber based on the the potential of the offshore energy sector there. Swiber had started nurturing a presence in India since 2006. But it was in July 2007 when Swiber moved in aggressively on the fast growing oil and gas industry in India with the incorporation of a wholly]owned subsidiary, Swiber Offshore India Private Limited, in Mumbai, India, to act as a platform from which the Group can tap on business opportunities in the region.
"The EPCIC contract win comes less than a year into the set up of our office in India. It goes to show the intent we have in growing our presence there. India represents one of the most dynamic and fast growing markets for offshore oil and gas activities. All indicators point to a big and growing demand for offshore marine support and EPCIC services. Without a doubt, Swiber is focused on strengthening our presence in India," Mr Goh added.
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