Swiber Holdings Limited (Swiber or together with its subsidiaries, the Group), a world class integrated construction and support services provider to the offshore industry, through its Indonesian joint venture company, PT Rajawali Swiber Cakrawala, has been awarded a contract amounting to approximately US$175 million by an oil major for offshore engineering, procurement, construction and installation (EPCI) works in Indonesia, following a successful bid made jointly with consortium partner, PT SMOE Indonesia.
This latest contract win entails offshore EPCI works for platforms, pipelines, and existing facilities in Indonesia. The execution of this project will commence immediately this year and is expected to be completed in 2014.
Commented Mr. Francis Wong, Group Chief Executive Officer and President of Swiber, “The Group has shown our mettle in executing complex offshore projects in a wide variety of terrains and is now firmly established in the offshore sector’s big league. In addition to Swiber’s strong fleet of vessels and top-in-class taskforce, Swiber’s value proposition is enhanced by our synergistic partnerships with cutting-edge offshore service providers such as PT SMOE Indonesia. We share this milestone win with PT SMOE Indonesia and are excited to embark on this EPCI Project in Indonesia together. ”
PT SMOE Indonesia is a unit of SMOE, a wholly-owned subsidiary of Sembcorp Marine, a major marine and offshore engineering group. PT SMOE Indonesia owns and manages a 67.5 ha purpose built yard which started operations in 2003 in Batam. With its large gravelled surface and half a kilometre of reinforced deepwater quayside, the yard has tapped into an increasing number of local offshore projects and undertaken heavy-weight EPIC projects.
Mr. Wong said, “Our ability to swiftly capture sizeable opportunities arises from our sharpened acumen that is weaned from our years of dedicated operations and numerous successful project executions. As we actively expand and diversify our order backlog geographically, Swiber has taken a quantum leap to be at the cutting-edge alongside other quality local and international service providers in the offshore industry. The odds are in our favour as our joint bids put us in an advantageous position to capture contract wins in this bustling offshore oil and gas sector. Swiber Holdings
Barclays Asia Capital opines that oil price will be US$115 per barrel for 2012, making it economical for oil companies to go in search for more unconventional oils as global oil demand is expected to rise 1.04 million barrels a day on average in 2012. Southeast Asia is one region that is seeing bustling offshore activity catalysed by the recent US$778 million oil hub project launched in Johor and the opening of abandoned oilfields to foreign operators by Petronas. Religare also noted recent healthy order flows of US$12 billion wins for listed Asian offshore yards.
Concluded Mr. Wong, “Offshore oil and gas players are increasingly interested in E&P opportunities in the Southeast Asian region and are eager to partner with established and reputable offshore service providers in their endeavours. Swiber, as an internationally recognised world class company based in Singapore and familiar with regional terrains, is an ideal candidate that is likewise ready to support the region’s growing energy demands.”
With this slew of new contract wins, key strategies in place, strong order book visibility, and robust opportunities in the Southeast Asia, South Asia, Middle East and Gulf of Mexico regions, Swiber is firmly entrenched in the big league.