Petra Energy bags RM2.5b Petronas job

KUALA LUMPUR: Petra Resources Sdn Bhd, a wholly owned subsidiary of Petra Energy Bhd, has received a five-year contract from Petronas Carigali Sdn Bhd for the provision of hook-up, commissioning (HUC) and topside major maintenance services.

In its filing with Bursa Malaysia yesterday, the group said it did not disclose the amount of the contract, but industry sources said it is estimated to be worth RM2.5 billion. The contract was awarded on May 21 and will expire in May 2018.

“The contract is expected to contribute positively to the earnings and net assets per share of Petra Energy for the duration of the contract,” said the group.

A Petra official told The Edge Financial Daily the contract win meant Petra was on track for its five-year plan.
“This is an endorsement by the industry about Petra’s capabilities. It also means we can pursue our goal of providing value to our shareholders.

“It is our ambition to move up the value chain, and this contract will be a real turnaround for us because it is the biggest one we’ve received so far,” said the Petra official.

Petra’s contract award comes after similar major HUC and topside contracts were awarded to Dayang Enterprises Holdings Bhd and SapuraKencana Petroleum Bhd recently.

Dayang this month received over RM3 billion worth of contracts from Petronas Carigali, Shell and Murphy Oil.
SapuraKencana received HUC and topside contracts worth up to RM500 million two days ago from ExxonMobil.

These contracts are part of the Pan Malaysia cluster, which has been reported to be worth some RM10 billion. Analysts said another RM4 billion worth of contracts are expected to be dished out by oil majors in the coming months.   

Besides Dayang, SapuraKencana, Petra Energy, other oil and gas services companies in the running for the remaining HUC and topside contracts are TH Heavy Engineering Bhd and Alam Maritim Bhd.


This article first appeared in The Edge Financial Daily, on May 30, 2013.