SAAG ... Aug 2008

SAAG, an oil and gas (O&G) engineering player, expects to know the outcome of its bid for contracts worth RM350mil in the next two months (Sept – Oct 2008).

The group would get the award result for a RM200mil project in India by end of this month (Aug 2008). The award result for a local contract worth RM150mil will be announced in October 2008. The contracts are for the servicing of platform rigs and drilling equipment in mostly O&G upstream activities.

Going forward … The group was preparing to tender for another Indian job worth RM300mil by year-end, also for similar services.

On its current RM700mil order book, the contracts would last until early 2012.
Major current contracts include the supply of work-over rigs, telecommunication towers, sewerage projects and the supply of tankers.

On its delayed Labuan Shipyard Engineering Sdn Bhd joint venture deal, it would be concluded in a month or two (Sept – Oct 2008). The delay was deliberate as they need time to re-evaluate the viability of the project, But, all the details have been ironed out and they are currently finalising the contracts with our Iran counterpart for the supply of rigs.