Swiber Holdings Limited (“Swiber” or together with its subsidiaries, “the Group”) announced its first series of contract wins in the beginning of the new year. The Group has clinched five sizeable contracts totaling approximately US$235 million.
Three of these contract wins, which amounted to approximately US$145 million, were awarded to the Group for works that will be executed in Latin America and Southeast Asia. The remaining two contract wins, which aggregated to approximately US$90 million, were awarded to Swiber’s associate company and joint venture company, and are for services that will be executed in Southeast Asia. These contracts will commence immediately and are expected to be completed in next 2 years.
Commented Mr. Francis Wong, Group Chief Executive Officer and President of Swiber, “We are pleased to begin 2014 on a strong note. Swiber continually endeavours to better execute our projects, increasing our safety profile, being on time and on budget. This proven ability and capacity in integrated construction and support services in the offshore oil and gas industry, coupled with our unwavering commitment to excellence, continues to be recognised by the industry.”
Outlook
Market observers estimate that global exploration and production (“E&P”) spending is expected to see another record high of US$723 billion in 2014, 6% higher than the previous year. In Latin America, despite a dip in capital spending by Petrobas, the region is expected to see a double-digit gain in spending. Oil majors such as Petróleos de Venezuela, S.A. (“PDVSA”) and Pemex could increase their E&P spending by 50% and 14% from the previous year, respectively.
Separately in Southeast Asia, market observers noted that Southeast Asia holds about 60.92 billion barrels of oil equivalent (“boe”) in commercial and technical oil and gas reserves, while total yet-to-find volume is estimated at 14.6 billion boe, of which liquids comprise 5.5 billion boe and gas 9.1 billion boe. Myanmar, Indonesia, Vietnam and Malaysia are some of the countries in Southeast Asia targeted by offshore oil and gas majors.
“In terms of industry prospects, the potential in Latin America and Southeast Asia is bright, and Swiber, with our long-standing and established networks in these regions, is in an ideal position to ride on this wave. As we step up our efforts in bidding for the growing E&P work at these locations, we are optimistic of a sustained smooth flow of success.”
Press Release, February 03, 2014; Image: Swiber