Oil & Gas Hype
SapuraCrest Petroleum Bhd’s subsidiary TL OffShore Sdn Bhd has won a US$175.8mil (RM542m) contract from Murphy Sabah Oil Co Ltd. The contract was for the provision of engineering, procurement, construction, installation and commissioning of the 140km Kikeh gas pipeline, which would transport associated gas from Murphy’s Deepwater Kikeh Field to Labuan Gas Terminal. Kikeh Field, located about 1,300m offshore Sabah, is the first deepwater development in Malaysia. SapuraCrest said the deepwater pipelay would be executed using Sapura 3000, owned by SapuraAcergy Group, its 50% joint venture company with the Acergy Group. The project is scheduled for completion in the first quarter of 2008 and is expected to contribute positively in the current year ending Jan 31, 2008.
All the hooplah over oil & gas stocks for the past 12 months have yielded a lot of hot air. Many oil & gas related stocks have seen their share prices more than doubled, and the size of the contracts secured are those types that are less than RM100m in value. SapuraCrest has quietly showed progress and notching milestones along the way. Can expect new substantial shareholder to continue to give SapuraCrest a leg over the rest. More big contracts on the way for SapuraCrest.