SapuraKencana Petroleum competes with global oil services giants
"Strength in unity" serves Malaysian companies that work together to boost their performance and capabilities, particularly in global oil and gas. In line with the government's EPP focusing on strategic OGE partnerships, SapuraCrest and Kencana Petroleum merged to become SapuraKencana Petroleum.
Following the HK$28.9 billion merger, SapuraKencana became the world's fourth-largest oil and gas services provider in terms of assets, and the only Asian company in the world's top five engineering, procurement, construction, installation and commissioning companies. Where SapuraCrest and Kencana individually hovered just outside the world's top 10 global oil field service companies, the merger placed SapuraKencana at No 9.
"We consolidate the fabricators because it is more cost effective for major oil and gas offshore players to have one contractor that can do the job from end to end," says Dr Mohammed Emir Mavani Abdullah, PEMANDU director for OGE and financial services. "Sapura and Kencana are a single fabricator, and more players will look into that particular area of consolidation."
SapuraKencana has a total capital expenditure of HK$10.86 billion. Its asset base includes the Lumut Fabrication Yard and the Labuan Shipyard, four derrick lay vessels, a subsea construction vessel and 24 remote operating vehicles.
Under another EPP focused on developing small fields, SapuraKencana joins Petrofac Energy Developments in a consortium to develop PETRONAS' Berantai marginal field. SapuraKencana holds a 50 per cent stake in the Berantai risk service contract, in which the consortium will invest HK$6.25 billion. The first phase of oil wells at Berantai is set for completion this year.
On its united strength, SapuraKencana continues to grow beyond Malaysian borders, bringing its services to Southeast Asia, Australia, India, Russia, Japan, Brazil and the Middle East. It has also established a regional presence in Britain and the United States.
