KUALA LUMPUR: SapuraKencana Petroleum Bhd, via wholly owned SapuraKencana Drilling Pte Ltd (SKD), is strengthening its grip on the world’s tender rig business by taking delivery of its first tender-assist drilling rig, to be followed by a semi-tender rig soon.
The state-of-the-art new tender-assist drilling rig, called T-17, is designed for offshore oil and gas (O&G) development drilling with depths of up to 20,000ft. The facility features drilling and well-controlled equipment, large storage capacities and can accommodate 160 crew members.
With the arrival T-17, SKD now owns 21 tender rigs, of which 13 are tender barges and eight semi-tenders. This makes SKD the main player in the worldwide tender rig business.
“We aim to strengthen our already dominant position with more newbuilds and at the same time synergise with SapuraKencana Petroleum’s integrated services value proposition,” SapuraKen-cana president and group CEO Datuk Seri Shahril Shamsuddin said in a statement yesterday.
The T-17, built at the Cosco Shipyard in Nantong, China, will be deployed in the Gulf of Thailand for long-time SKD client PTT Exploration and Production Plc of Thailand. The T-17 is a replacement of an older vessel T-3.
The new T-17 will soon be joined by another newbuild, the semi-tender rig Esperanza, recently built by Keppel FELS of Singapore. It is designed for deepwater offshore O&G development drilling, with depths of up to 30,000ft.
It will be towed out of Singapore next month for Hess Corp in Equatorial Guinea under an 18-month contract.
SKD became a fully owned subsidiary of SapuraKencana following the latter’s acquisition of London-based Seadrill’s entire tender rig business for US$2.85 billion (RM8.7 billion) this month.
SKD is presently the world’s largest tender-assist driller with over 30 years of experience, operating in Southeast Asia, West Africa and Central America.
Shahril said the two new tender rigs will positively impact the overall SKD fleet age profile and extend the company’s drilling capabilities and revenue further.
A Kenanga Investment Bank research report yesterday said SapuraKencana’s acquisition of Seadrill’s tender rigs had ballooned its order book to RM18 billion.
Its analyst said the new tender drilling rigs will positively impact earnings for the group. She estimates SapuraKencana’s net profit at RM1 billion for the 2014 financial year ending Jan 31 (FY14), of which RM534 million will come from new drilling rig earnings.
For FY13, the group recorded a net profit of RM524 million on revenue of RM6.91 billion. The research house has an “outperform” call on SapuraKencana at RM3.90, with a target price of RM4.57.
On Monday, SapuraKencana won a five-year contract from ExxonMobil Exploration and Production Malaysia Inc for the provision of hook-up and commissioning and topside major maintenance services worth between RM300 million and RM500 million.
This article first appeared in The Edge Financial Daily, on May 29, 2013.