Scomi ... Aug12

Scomi Group Bhd is believed to be the front runner for two risk-service contracts (RSCs) to be awarded by Petroliam Nasional Bhd (Petronas) for the Tembikai and Cenang marginal fields off Peninsular Malaysia.

Sources said besides Scomi Group, the other bidders for the contracts included Bumi Armada Bhd, Daya Materials Bhd and Sydney-based AWE Ltd.

A source said Petronas was close to announcing the winners for these two fields with contracts valued at between US$200mil (RM620mil) to US$400mil (RM1.2bil) each.

In June 2012, the company was looking to tender for about US$1bil (RM3.1bil) in oil and gas services contracts within the next year. Scomi presently has an orderbook of about RM1.3bil.

Scomi Group, in the midst of a restructuring exercise, is said to be partnering another Australian company, Cue Energy Resources Ltd, for this bid. Cue Energy is an oil and gas exploration and production company with a presence in South-East Asia and Australasia.

Bidding for these fields were extremely competitive, with some bidders aggressively showcasing technical capabilities and financial muscle to seal the deal.

The value of Tembikai and Cenang of between US$200mil to US$400mil is based on capital expenditure and operating expenditure.

Tembikai and Cenang are the juiciest marginal oilfields, as they are in shallow waters and have the most reserves.

Scomi secured a RM130mil contract from Qatar's state-owned petroleum company Qatar Petroleum for the supply of drilling fluids and engineering services over three years. The contract was secured via Scomi Oiltools (Cayman) Ltd.

Scomi's restructuring exercise involves a merger between the Eastern Hemisphere business of oilfield services and its associate company, Scomi Marine Bhd's offshore support services.

In February 2012, the company announced a corporate restructuring, which would see its businesses and those of Scomi Marine merged under a new, full-fledge integrated oil and gas marine and drilling services provider.