KUALA LUMPUR — Nov. 27, 2018: Sapura Energy has further cemented its track record as a prominent global player by securing new contracts in Mexico, approximately eight months after being awarded Block 30 in the Gulf of Mexico.
The company won the contract from Hokchi Energy S.A. de C.V. to undertake engineering, procurement, construction, transportation and installation in the Hokchi field development, also in the gulf. The project is expected to be completed by the end of the first quarter in 2020.
Sapura Energy further won a new job from ENI Mexico S. de. R.L de. C.V. to undertake engineering, procurement, construction, transportation and installation works in the Offshore Block Area 1 in the gulf. This is expected to be completed by the end of the second quarter of next year.
Just last March, Sapura Energy and its joint venture partners, DEA Deutsche Erdoel Mexico and Premier Oil, were awarded Block 30 in the Sureste Basin in the gulf.
Block 30 is located in shallow waters of about 70 metres, directly to the south west of Premier’s Zama discovery, and to the north of the Amoca oil field. The project is based on an equity split with DEA having a 40% stake, Sapura Energy 30% and Premier Oil (30%).
The consortium managed to outbid six others to secure Block 30, one of the most coveted blocks within a proven and prolific hydrocarbon province. It has identified material leads and prospects on Block 30 in the tertiary clastic plays, typical of the Sureste Basin. Premier Oil made the Zama discovery in July 2017.
An analyst report by TA Securities last March after the announcement was positive on Sapura Energy’s deal for Block 30 due to several key reasons, such as the international diversification of exploration and production (E&P) assets, increase in oil & gas reserves if exploration campaigns yield results, and leveraging on its partner Premier Oil’s substantial track record and expertise.
The huge project is also a good opportunity for Sapura Energy to deploy its subsea technical services and engineering & construction (E&C) fleet during the exploration and subsequent development phase respectively.
Other positives include “low exploration risk as direct hydrocarbon indicators (DHIs) on exhibits on the main prospect indicate a potential material oil play. Shallow water reserves typically have high commerciality and fast development turnaround time. The immediate near term cash outlay for Block 30’s exploration program is minimal,” said the TA Securities report.
Sapura Energy’s consortium partner Premier Oil is an established independent company based in the United Kingdom with E&P assets across UK, Asia, Africa and Mexico. It is listed on the London Stock Exchange with current market capitalisation of 541.39 million pounds.
Sapura Energy has substantial E&C track record and experience in Mexico, particularly in the Sureste Basin, and has been operating there since late 2012. The company also has an ongoing working relationship with state-owned oil company, Mexican Petroleum.