KUALA LUMPUR: SapuraKencana Petroleum Bhd has clinched a contract from Oil and Natural Gas Corp Ltd for the Mumbai High South Redevelopment Phase III project on a turnkey basis, worth US$273 million (RM1.04 billion).

In a filing with Bursa Malaysia yesterday, SapuraKencana (fundamental: 0.85; valuation: 0.8) said it secured the contract via its wholly-owned subsidiary Kencana HL Sdn Bhd, currently known as SapuraKencana HL Sdn Bhd.

It said the job scope includes but is not limited to surveys, design, engineering, procurement, fabrication, transport and installation, hook-up and commissioning of three new Well Head platforms, around 116km of submarine pipelines and around 7.5km of submarine cables.

It added that the contract also covers modification works on existing platforms, including clamp-on works on two platforms, subsea repair works on three jackets and D1C pile remedial works.

“The contract value is US$211.95 million, [plus] €7.71 million (RM32.42 million) and 3.41 million rupees (RM204,000), including taxes and duties, and excluding the service tax in India,” it said.

SapuraKencana said the contract agreement was signed by both parties and executed on June 27 in Mumbai, India.

The oil and gas services company expects the overall project to be completed on April 30, 2017.

“The award is expected to contribute positively to the earnings and net asset [value] per share of SapuraKencana for the financial year ending January 2016 (FY16), and FY17,” it said.

SapuraKencana’s share price inched up three sen or 1.26% to close at RM2.41 yesterday, with a market capitalisation of RM14.26 billion.

This article first appeared in The Edge Financial Daily, on July 14, 2015.