Scomi wins RM380m contract in Indonesia
Tuesday, January 8 2013 - 12:53 AM WIB
Malaysia-listed Scomi Group Bhd's (Scomi) Oilfield Services business was given a Letter of Award for the provision of drilling fluids (DF) and completion services for one of its major DF contract wins in Indonesia.
The project, estimated at RM380 million, is the first cooperation between Scomi and Total E&P Indonesie (TEPI) for a 3-year mega project commencing in July 2013.
"This latest win is our single largest work in terms of contract value in Indonesia to-date. This is an affirmation of our ongoing efforts in R&D for effective and quality solutions in drilling fluids. Our formulations are able to withstand challenging drilling environments like high temperature wells and acute angle drilling,? said Wan Ruzlan, President of Market Units for Scomi Oilfields Services division.
?The exceptional record that we have in this part of the O&G sector is a testament of our commitment to providing undivided quality service and value to our clients, and it is a good start to the year," he added.
This award follows closely the earlier award of RM93.6 million contract in Myanmar and the RM130 million contract in Qatar which were announced on 7th December 2012 and 23rd August 2012, respectively.
In total, Scomi has secured RM603.6 million in drilling fluids and drilling waste management contracts from major clients for these recent wins. Indonesia is one of Scomi?s key markets in the O&G sector.
With growth focused on Asia, Indonesia has a great deal of potential in its O&G industry as it looks to increase oil production and revive its mature wells. In a total market perspective, the country is considered an important component of the region's energy marketplace from both a demand and supply perspective, which augurs well with Scomi's Oilfield Services division?s focus on the Eastern Hemisphere.
To-date, the Oilfield Services has a healthy order book of over RM1.7 billion and participated in tenders in excess of RM3.0 billion. The ongoing corporate exercise that involves the merger of the Energy Logistics and Oilfield Services divisions of Scomi will create a much stronger entity with enhanced capabilities to support the current increase in drilling activities in the region. Pending shareholders? approval, the merger is expected to complete early this year.
Scomi Group Bhd, which is listed on the Bursa Malaysia Securities Bhd, and its Group of companies are involved in the oilfield services, transport solutions and energy logistics sectors. The Group offers drilling fluids and related engineering services, drilling waste management solutions, supply of industrial and production chemicals, marine vessel services, transport engineering solutions involving special purpose vehicles, rail wagons, monorail and buses.
Scomi's Oilfield Services has been present in Indonesia for over 20 years. The Scomi group of companies have also been operating in Indonesia with presence in Balikpapan, Jakarta, Banjarmasin and Duri.
Editing by Benget Besalicto Tnb.