KUALA LUMPUR: RHB Research has maintained its Neutral call on Petra Energy with a fair value of RM3.02, it said in a note on Wednesday.
RHB said Petra Energy announced that the topside major maintenance (TMM) works for
Petronas Carigali’s Sabah operation have been awarded an early
activation.
"As the TMM portion is part of the RM2.5bil umbrella contract running from 2013-2018, we make no changes to our estimates at this juncture," it said.
The research house believed Petra Energy has done well to turn itself around and slowly build a good track record with the early start to the TMM portion of the contract and the successful operation of the KBM cluster.
"We note that there is a possibility of the company winning another RSC from Petronas in the next round of awards, which could be a re-rating catalyst for the stock," it said.
It said Petra Energy was awarded a risk service contract (RSC) by Petronas to operate the Kapal, Banang, and Meranti (KBM) cluster in partnership with Coastal Energy Ltd (70% equity stake
in the joint-venture).
"The Kapal field achieved first oil in Dec 2013 while the Banang field recently came online in July, three months ahead of schedule.
"We expect the Meranti field to start producing oil near end-2014 or early 2015. At its peak, we believe the cluster will be capable of producing 20,000 barrels per day in total," it said.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
