Page 5 - AsianOil Week 26

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Sapura Energy wins 10 service contracts
PROJECTS & COMPANIES
MALAYSIAN services provider Sapura Energy has won 10 contracts that are worth a combined total of MYR1bn ($241.6mn) and are spread across Malaysia, ailand, Taiwan and Australia.
e company landed three drilling contracts from Petronas Carigali, Sarawak Shell and Sabah Shell Petroleum, and Chevron ailand Explo- ration & Production.
Petronas Carigali awarded a drilling contract for four wells at the West Lutong Field to the Sapura T-10 rig, with one-plus-one well exten- sion options.
Under the agreement with Sarawak Shell and Sabah Shell, Sapura will provide its Sapura Espe- ranza semi-submersible rig to drill two wells at the F14 eld o shore Malaysia. e agreement has multiple extension periods, which could lead to 17 additional wells being drilled.
Chevron ailand awarded a 12-month drill- ing services contract for o shore ailand to the Sapura T-18 rig.
Sapura also secured four engineering and construction contracts (E&C) from JX Nip- pon Oil & Gas Exploration (Malaysia), Aus- tralia-based Cooper Energy, PTT Exploration
and Production (PTTEP) and PTTEP Interna- tional (PTTEPI).
e JX Nippon contract will see Sapura trans- port and install subsea exible pipelines and ris- ers for the Layang eld o shore Malaysia. e pipelines will connect an unmanned wellhead platform to a oating production, storage and o oading unit (FPSO).
Cooper Energy has commissioned Sapura to provide repair services for the subsea umbil- ical system at the Casino Henry and Netherby Electrical Umbilical Backbone Repair Project o shore western Victoria, Australia.
PTTEP awarded an engineering, procure- ment, construction and installation (EPCI) con- tract for four riser hoses at the Bongkot gas eld the Gulf of ailand. Sapura will also remotely operated vehicles (ROVs) to carry out subsea inspection, repair and maintenance services at the Bongkot and Arthit gas elds.
Woodside Burrup awarded the services provider the Pluto PLA-07 Light Well Interven- tion contract and christmas tree installation. Woodside Energy’s contract, meanwhile, covers light well intervention services at the WA03 and WA-11 wells o shore Western Australia.
Subsidiary Sapura Offshore also won the group’s rst o shore wind farm contract from Taiwan’s Yunneng Wind Power. e company will transport and install the foundations for o - shore wind turbines at the Yunlin O shore Wind Farm in Taiwan.
State-owned oil major Petronas has also selected Sapura subsidiary Sapura Fabrication to provide engineering, procurement and con- struction (EPC) services for xed o shore struc- tures under a six-year framework agreement.™
SOUTH ASIA
Report: Cairn halts royalty payments to ONGC
PROJECTS & COMPANIES
THE partners in India’s largest onshore oil eld have reportedly been locked in a two-year long dispute that has le state-run Oil and Natural Gas Corp. (ONGC) $400mn out of pocket.
PTI reported on July 1 that Cairn Oil & Gas, which holds a 70% stake in Block RJ-ON-90-1 in Rajasthan State, had not regularly paid its share of royalties on the eld’s production since July 2017.
ONGC, which owns a 30% interest in the block, is the original licensee and is required to pay 100% of the royalties on the eld. However, under a deal with Vedanta during its takeover of Cairn in 2011 it was agreed that Cairn would pay a share of the royalty relative to its stake in the block. is payment would be made to ONGC
shortly after the state company paid the full amount to the government.
e royalty is set at 20% of the oil price the eld’s entire output is sold at.
Unnamed industry sources said Cairn had stopped regular payments in 2017 over a dispute about its right to cost recoveries, as stipulated in the block’s production-sharing contract (PSC). PSCs, before they were replaced with reve- nue-sharing contracts (RSCs), allowed devel- opers to invest in exploring existing production areas and then deduct that cost as an expense from the eld’s revenue.
PSCs proved controversial, however, with the central government frequently accusing devel- opers of gold-plating their costs.
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