SapuraKencana Plans $500M Annual Capex to Develop Newfield's Assets
KUALA LUMPUR, March 25 (Reuters) – Malaysian oilfield service provider SapuraKencana Petroleum Bhd plans to spend $500 million annually to develop the oil and gas assets it bought from Newfield Exploration Co.
The company plans the capital expenditure over the next three years, 'depending on the speed at which we develop this field', its president and group CEO Shahril Shamsuddin told reporters at a media briefing on Tuesday. SapuraKencana hopes the development of the Malaysian assets will bear fruit by 2017.
SapuraKencana, which has a market value of $7.79 billion and expanded inorganically over the past two years, bought Seadrill Ltd's tender rig business in 2012 and the entire equity stake of Newfield's Malaysian oil and gas assets last year.
The company recently inked a $5 billion refinancing deal with 13 banks to partly fund the two acquisitions.
SapuraKencana, which has a healthy order book of 25.4 billion ringgit, expects future earnings to grow on the back of contributions from both of these assets starting this year.
Its shares rose 0.93 percent to 4.34 ringgit at 0711 GMT, outperforming the benchmark index's 0.14 percent drop. The shares have climbed about 41 percent over the past year.
(Reporting by Yantoultra Ngui; Editing by Anupama Dwivedi)
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