Monday, August 10

Kencana Petroleum secures EPCC contract from Murphy Sarawak

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KUCHING : Kencana HL Sdn Bhd, a wholly owned subsidiary of Kencana Petroleum Bhd (Kencana) has won a RM460 million to RM474 million engineering, procurement, construction and commissioning (EPCC) contract from Murphy Sarawak Oil Co Ltd (Murphy Sarawak) for the fabrication of offshore topsides.

According to OSK Research Sdn Bhd (OSK Research) the EPCC contract was for Serendah Production topsides facilities of the SK309/311 SPSA development project, which was part of Murphy Sarawak’s SK309/SK311 oil fields development located offshore Bintulu, Sarawak.

This offshore topsides were expected to be delivered by the second quarter of calendar year 2013.

Recently, Kencana’s shares had been suspended together with SapuraCrest to facilitate the merger exercise that would form a new entity to be renamed and re-listed as SapuraKencana Petroleum (SKP) Bhd. It was expected to be re-listed on May 17, 2012 on the Bursa Malaysia’s main board.

OSK Research stated that SKP was poised to target bigger and more lucrative oil and gas (O&G) projects in and outside Malaysia, thanks to its business model.

Analyst remained bullish on SKP as it was now a full-fledged engineering, procurement, construction, installation and commissioning (EPCIC) oil and gas provider.

The research house maintain its forecast for Kencana for  financial year 2013 to financial year 2014 and pegged a fair value of RM2.88 per share.