SAPURA ENERGY JOIN ARAMCOS LONG TERM AGREEMENT – MIDDLE EAST

SAPURA ENERGY JOIN ARAMCOS LONG TERM AGREEMENT

KUALA LUMPUR: Sapura Energy Bhd has been chosen to join Saudi Aramco’s Long-Term Agreement (LTA) program for a time of six years with an option to extend.

The LTA program covers engineering, procurement, fabrication, transportation, and installation (EPCI) contracts to help Saudi Aramco’s offshore undertakings projects.

President and group CEO Tan Sri Shahril Shamsuddin said the program would empower Sapura Energy to develop its business and extend the organization’s quality in the Middle East.

“We are respected to be chosen by Saudi Aramco for its LTA program. This success is a noteworthy achievement for Sapura Energy in accordance with our methodology to develop the business and extend our quality in the Middle East,” said Shahril, who was likewise the signatory for the organization at the signing event, held in Dammam, Saudi Arabia on Monday.

Joining the major league of international specialist co-ops as an LTA contractor, Sapura Energy will take an interest in offers for EPCI opportunity by Saudi Aramco.

Sapura Energy qualified as an LTA contactor after effectively experiencing a broad appraisal and meeting thorough operational and security necessities.

A key part of the LTA is Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) program which expects to drive local value creation with the LTA contractual workers.

Sapura Energy has found a way to satisfy its IKTVA responsibilities by banding together local organizations and creating local abilities by utilizing on its in-house specialized and venture the executives’ skill and additionally its world-class armada of offshore development resources.

Saudi Aramco is reportedly planning to contribute US$500 billion throughout the following 10 years as a major aspect of its procedure to wind up a worldwide refiner and chemical manufacturer.

The investment plans are a piece of the organization’s technique to benefit from fragments in the oil business with popularity and seek after the kingdom’s economic diversification programme

Saudi Aramco’s planned acquisition of a 70 percent interest for chemical company Sabic from the sovereign Public Investment Fund (PIF) is esteemed at US$70 billion. The deal does exclude the thought for this transaction.

In the meantime, Sapura Energy as of late declared that it was moving a 50 percent stake in its wholly-owned exploration and production subsidiary, Sapura Upstream, to OMV AG for US$890 million (RM3.7 billion) cash.

An aggregate of US$720 million (RM3 billion) will be used to reimburse the organization’s debts and US$160 million (RM667 million) will be designated for working capital. The deal is required to be finished in the principal quarter of 2019.

Source:https://www.nst.com.my/business/2018/11/435352/sapura-energy-join-aramcos-long-term-agreement-programme

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