SapuraKencana Bags $2.7B Petrobras Contract for Support Vessels

SapuraKencana Bags $2.7B Petrobras Contract for Support Vessels

Malaysia's integrated oil and gas services provider SapuraKencana Petroleum Berhad won a major new contract  worth $2.7 billion from Brazil’s Petroleo Brasileiro (Petrobras) to build, charter and operate 3 deepwater flexible pipe laying support vessels (PLSVs) for a firm period of 8 years.

SapuraKencana’s associate company, Sapura Nevegacao Maritima S.A. Brazil (SNM), bagged the contract after Petrobras launched a tender late last year.

SNM, which will build the 3 new PLSVs outside Brazil, will charter and operate the new vessels for a period of 8 years, with an option to extend for an additional 8 years. Delivery of the PLSVs for operation will begin from around the second quarter of 2016.

SapuraKencana has won its first contract from Petrobras worth $1.4 billion in November 2011 to construct, charter and operate 3 similar PLSVs, with two of these now under construction.

“The new Petrobras award is yet another major milestone for SapuraKencana because it further adds to our deepwater capabilities. The 3 new PLSVs will be capable of laying flexible pipelines in up to 9,843 feet water depth offshore Brazil which offers some of the most exciting opportunities in the global oil and gas sector," SapuraKencana President and Group CEO Tan Sri Shahril Shamsuddin said in a company release.

“The award builds greater confidence in SapuraKencana as a technically sound services provider, with solid expertise and capability to provide world class integrated oil and gas services solutions to a host of national oil companies and major international oil majors in Latin America, West Africa, Australia and other parts of the world."

“This expanded new business overseas, coupled with anticipation of more work in Malaysia arising from the ongoing quest to extract more hydrocarbons deeper, as well as new opportunities opening up in West Africa, China, India and Mexico augurs well for SapuraKencana in the near to medium term,” he added.


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