Sapura Onix, a platform of SapuraKencana Petroleum. (Photo: sapurakencana.com)
SapuraKencana Petroleum Bhd, Malaysia’s largest oil and gas services provider by revenue, and PetroVietnam
Technical Services Corp are jointly bidding for a contract potentially worth up to $300 million for Oil & Natural Gas Corp’s Neelam processing platform and other facilities.
The information was unveiled in a report by oil and gas magazine Upstream, cited by the Star newswire.
The Neelam workscope involves a new processing platform with a topside weighing about 5,500 tons and it is bridge-linked to an existing platform, two new wellhead platforms and three clamp-on structures, according to the newswire.
In a related development, SapuraKencana Petroleum announced last week it had dropped its plan to buy three assets offshore Vietnam for $400 million from Petronas Carigali, a move that analysts say would help the company conserve cash amid an oil crash.
Under the proposed agreement sign in late 2014, SapuraKencana, through its subsidiaries was to acquire interests in several oil blocks located in Cuu Long and Nam Con Son basins, located off Vietnam’s south coast.
“Asset acquisitions by SapuraKencana might be even cash burning", if crude oil prices fell towards US$20 per barrel, said Jason Tan, an analyst from Hong Leong Investment Bank Bhd.
“We opine that low oil price is likely to persist in the midterm, amid concerns about oversupply from US Shale, unchanged production from Organization of Petroleum Export Countries (OPEC) and lifting of Iran sanction,” said the analyst.