Sapura Energy Bags Pipelaying Contracts from Petrobras

Malaysia’s Sapura Energy Berhad joint venture companies have secured contracts from Petróleo Brasileiro SA (Petrobras) to provide the services and charter of six pipe-laying support vessels (PLSVs).

The contracts are for a term of three years, beginning on different mobilization dates for each of the PLSVs, with the longest dated contract lasting up to 2028, Sapura Energy said in a bourse announcement. The total value of the contracts is $1.8 billion.

The scope of work includes the provision of subsea engineering, installation and other services, by utilizing the PLSVs in Brazilian waters. Sapura Energy said the PLSVs will perform all operations required for the installation of flexible pipes, electric-hydraulic umbilical and power cables, new or used, such as loading, unloading, laying, connection between spans, vertical connection (first and second end) on submarine equipment, installation of submarine equipment and hydrostatic test, in a maximum water depth of 9842.5 feet (3000 meters).

Sapura Energy, through its wholly owned subsidiary Sapura Offshore Sdn Bhd, holds 50 percent equity interests in the joint venture companies.

Restructuring Progress

In March, Sapura Energy and its 22 wholly owned subsidiaries were granted new convening and restraining orders by the High Court of Malaya for a period of three months, beginning March 11.

The orders, sanctioned under the Companies Act 2016, will enable each of the scheme companies to summon meetings with creditors, to consider and approve a proposed scheme of arrangement and compromise as part of the company’s group-wide debt restructuring plan. The restraining orders will assist the scheme companies to engage with creditors without being disrupted by the threat of litigation.

In its application to the Court, Sapura Energy stated in an earlier statement that “significant progress in the restructuring exercise has been made”. Its multi-currency lenders have provided the requisite Approval-in-Principle for the proposed restructuring scheme while claims from its trade creditors under the Proof of Debt process have been fully reviewed.

Sapura Energy’s debt restructuring exercise aims to address its multi-currency financing of approximately $2.28 billion (MYR 10.8 billion) and outstanding payments to trade creditors amounting to about $0.32 billion (MYR 1.5 billion).

Sapura Energy Chairman Dato' Mohammad Azlan Abdullah said, "As previously announced, we appreciate the Approval-in-Principle from our financiers for the PRS. This was a major point that will enable us to move ahead with the restructuring”.

In April, TotalEnergies SE announced the acquisition of the remaining 50 percent stake in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn from Sapura Upstream Assets Sdn Bhd (SUA) for $530 million.

The energy major in January signed an agreement with OMV AG to acquire its 50 percent interest in SapuraOMV for $903 million.

After the completion of both transactions, TotalEnergies would own 100 percent of SapuraOMV, TotalEnergies said in a separate statement.

SapuraOMV’s main assets are its 40 percent operated interest in block SK408 and 30 percent operated interest in block SK310, both located offshore Sarawak in Malaysia.

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