SAPTURA ENERGY PARTNERSHIP FOR DRILLING SEGMENT

SAPTURA ENERGY PARTNERSHIP FOR DRILLING SEGMENT SAID BY SHAHRIL

SERI KEMBANGAN: Sapura Energy Bhd is mulling to either sell some portion of its drilling business as the apparatuses are right now under-used while it is searching for accomplices.

Its president and group CEO Tan Sri Shahril Shamsuddin said Sapura Energy was in converses with few parties to accomplice up for its drilling arm.

“Be that as it may, the cost must be right and it would open up to a new market and build our competitiveness,” he told reporters after the group’s EGM on Thursday.

Sapura Energy’s drilling arm is one of the group’s center business alongside exploration and production (E&P) and engineering and construction (E&C).

Shahril said Sapura Energy claims 16 drilling resources involves eight semi-tender apparatuses and eight tender help rigs.

“They are generally young resources with the life expectancy of somewhere in the range of 15 and 20 years,” he said, including the present usage rate was 35%.

Right now, Sapura Energy is amidst finishing the closeout of its half stake in its E&P business, Sapura Upstream Sdn Bhd, to Austria’s OMV Aktiengesellschaft.

Prior in November, Sapura Energy inked a share membership agreement and investors’ concurrence with OMV AG to build up joint venture (JV) organization, Sapura OMV Upstream.

Under the agreement, Sapura Energy will receive a sum of US$975mil in continues, including OMV’s membership installment for recently issued shares in the JV organization of US$540mil, an extra thought of up to US$85mil, and in addition the reimbursement from renegotiating of intercompany obligations of US$350mil.

At the EGM, investors of Sapura had consented to the association’s RM4bil cash call.

“The EGM was exceptionally smooth,” Shahril said, calling attention to this was a direct result of the strong sponsorship from the institutional assets for the corporate activities.

Source:https://www.thestar.com.my/business/business-news/2018/11/29/sapura-energy-open-to-partnership-for-drilling-segment/

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