TheStarOnline (Malaysia): Petra gets RM600mil Shell job: “INTEGRATED oil and gas services provider Petra Perdana Bhd, through subsidiary Petra Resources Sdn Bhd, has received from Sabah Shell Petroleum Co Ltd and Sarawak Shell Bhd a Letter of Intent to award a contract to undertake major maintenance and retrofit services for their offshore facilities in east Malaysia.” (ShellNews.net) 6 Nov 04
BY DALJIT DHESI
INTEGRATED oil and gas services provider Petra Perdana Bhd, through subsidiary Petra Resources Sdn Bhd, has received from Sabah Shell Petroleum Co Ltd and Sarawak Shell Bhd a Letter of Intent to award a contract to undertake major maintenance and retrofit services for their offshore facilities in east Malaysia.
Under the RM600mil contract, Petra Resources will provide maintenance, hook-up, commissioning and construction services at the topside facilities of Shell's production platforms offshore Sabah and Sarawak.
The contract will have a primary term of four years with options for two successive extensions of one year each. Work under the contract is targeted to start in the first quarter next year, according to a statement from Petra yesterday.
“Given our experience in maintenance and retrofit work on oil and gas facilities offshore, we are fully confident of executing the job scope requirements of the contract,” Petra executive chairman and chief executive officer Tengku Datuk Ibrahim Petra said.
He told StarBiz the company was bidding for more maintenance and retrofit jobs from oil and gas companies operating in the country. He added that the company's contracts in hand were worth more than RM1bil.
Ibrahim said there were also plans to tap into the regional market for such services, given that more than 600 production platforms in this part of the world were on average 20 years old.
He said the Shell contract came at a time when intense exploration and production activities, including brown field re-development, were taking place in the upstream oil and gas sector to increase output.
Ibrahim said that although the contract would have minimal impact on Petra's financial results for the current year, it would contribute positively to the group’s earnings over the duration of the contract period.
In the past couple of months, he said, the company had been building on its capabilities to provide integrated services for a broader spectrum of activities in the upstream oil and gas industry.
This exercise included strengthening its core competencies as well as developing the marine support services component.
“Today, we see our enhanced capabilities benefiting both Sarawak and Sabah Shell as well as the group,” he said.
“We are confident that this (enhanced capabilities) will add value to the Sarawak and Sabah Shell contract, thus resulting in a ‘win-win’ situation. Ultimately, the group, too, will benefit in terms of enhancing shareholder value,” Ibrahim added.