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Friday, January 3, 2014

Scomi Energy-Aussie partner close to securing Petronas contract (Star)

Scomi Energy Services Bhd and its Australian partner Octanex are said to be close to securing a contract from Petroliam Nasional Bhd (Petronas) to develop a marginal oilfield off the coast of Terengganu.

The Ophir cluster, one of 10 small oilfields reported in May to be tendered out by Petronas under its third round of risk service contract (RSC) licensing programme, was estimated to contain 5.1 million barrels of recoverable oil.
At current crude oil price of about US$100 a barrel, this values the Ophir contract at US$510mil (RM1.68bil).

The cost of developing the field is estimated to be anywhere between US$130mil and US$200mil, after taking into account the required capital and operating expenditures for the project.

It is believed that Petronas will announce the winners for the third round of RSCs as early as this month.

“Petronas is close to making the award, subject to certain conditions being fullfilled,” said one source, who declined to be named due to the sensitivity of the contract.

Scomi Energy will take up a 30% stake in the venture, with Octanex having a 50% share. Vestigo Petroleum Sdn Bhd, a unit of Petronas Carigali Sdn Bhd, would own the remaining 20% equity interest in the Ophir job, the source said.

If the RSC award to Scomi Energy materialises, it will be the first RSC win for the group.

A glance through Scomi Energy’s latest financial statements shows that the group is in a much better shape than a year ago. The company, formerly known as Scomi Marine Bhd, reported a net profit of RM48.59mil, or 2 sen a share, on revenue of RM651.2mil for the six-month ended Sept 30.

The stock was last traded at 80 sen yesterday.

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