SapuraKencana banks on transformation process, small jobs

SERI KEMBANGAN: SapuraKencana Petroleum Bhd is banking on its transformation process, which involves integrating expertise across the group and cost-saving measures, as well as taking on small jobs, to weather the challenging times in the oil and gas (O&G) industry. 

President/group chief executive officer Tan Sri Shahril Shamsuddin said the company had so far saved about RM500mil from the transformation process and was looking to squeeze savings by as much as RM250mil by year-end. 

“We want to transform the company to operate at a lower cost base and integrate all different expertise across the group to be able to create most cost-effective solutions for the clients,” he told reporters after SapuraKencana Petroleum’s AGM in Seri Kembangan on Tuesday.

The fully-defined new organisation structure was effective on June 1.

Shahril said including Monday’s announcement whereby its unit, SapuraKencana Mexicana SAPI de CV, bagged a US$113mil (about RM461mil) contract in Mexico, the group’s orderbook now stood at about RM20bil and bid book at US$7bil.

He said there were few O&G projects in the market today, adding on to the very competitive industry.

“In order to go back to the level of revenue we had before, we need to go around the globe and pick up many small jobs,” he said.

On Brazil, Shahril said the group currently had five operating assets with almost full utilisation rate.

“Our operations there continued to deliver robust performance because most gas fields there are viable even at low prices. 

“Their operational expenditure is at US$10 per barrel ... So anything above that is positive,” he said.

On the global oil price, Shahril said, he expected it to be between US$45 and US$55 per barrel next year on better demand. - Bernama