SapuraKencana gains foothold in Europe with RM510m pipeline deal

PETALING JAYA: SapuraKencana Petroleum Bhd has expanded its global footprint into Europe, bagging a RM510 million contract for the Trans Anatolian Natural Gas Pipeline (Tanap) from Tanap Dogalgaz Iletim AS.
The contract, awarded to SapuraKencana via its wholly-owned subsidiary company, SapuraKencana TL Offshore Sdn Bhd, is for the engineering, procurement, construction and installation (EPCI) of offshore pipelines and fibre optic cables for Tanap, located offshore Dardanelles Strait in the Sea of Marmara.
The project is scheduled to start in the third quarter of 2016 and end in the third quarter of 2018.
Tanap is a strategic natural gas pipeline project that links the two continents of Europe and Asia, supplying natural gas from the Southern Gas Corridor project in Azerbaijan through Georgia and Turkey and onwards to Europe.
Tanap is 58% owned by the state oil company of Azerbaijan Republic, 30% by the stated-owned Turkish Botas Petroleum Pipeline Corporation and 12% by British Petroleum.
"This contract win demonstrates that our transformation and strategies are continuing to enhance our competitiveness globally. Our cost reduction efforts and increased operational effectiveness have driven this enhanced competitiveness that has helped us to secure our latest wins in Mexico and Tanap, both totalling just under RM1 billion.
"These wins will contribute positively to the group's performance," Tan Sri Shahril Shamsuddin, the president and CEO of SapuraKencana, said in a statement.
To date, SapuraKencana has secured RM3.1 billion of new contract wins in the current financial year.