Swiber bags new projects worth US$215m, one US$100m contract re-tendered

SINGAPORE - Mainboard-listed Swiber Holdings, an offshore construction services provider to the oil and gas industry, has secured three new contracts for projects with a total value of US$215 million (S$291.5 million) in the Middle East and Southeast Asia.

Separately, Swiber said a US$100 million contract awarded in Feb 2016 has been re-tendered by the customer due to changes in the project work scope and schedule. It will soon be submitting its bid for this project, the company said in a filing to the Singapre Exchange on Tuesday (Jue 7).

Said Mr Darren Yeo, deputy group CEO of Swiber: "Despite the ongoing oil market volatility and challenging conditions in the offshore oil and gas industry, Swiber continues to demonstrate our ability to successfully secure new projects. In fact, one of these new projects represents an important breakthrough for Swiber into the lucrative Middle East market."

Swiber was awarded an engineering, procurement, construction and installation (EPCI) contract from a European oil major to perform pipeline replacement work in Qatar, its first offshore construction project in the Middle East. Swiber has commenced the engineering phase of this project which is scheduled for completion in the third quarter of 2017.

Swiber is also participating in a consortium that will carry out an EPCI of two wellhead platforms, associated pipelines and tie-ins for a project off the coast of Myanmar for a major Southeast Asian oil and gas company. This project commences immediately and is expected to be completed by the first quarter of 2018. The customer has options to award an additional two wellhead platforms.

The third contract involves the provision of transport and installation services for a full field development project in the waters off Vietnam. Swiber has started work on this job, which is targeted for completion in the third quarter of this year.

"While Southeast Asia has seen a slowdown in offshore oil and gas activities over the past couple of years, it remains an important market for Swiber as our projects in this region contributed US$117.1 million or 14.1 per cent of the group's revenue in 2015," said Mr Yeo.

The latest contracts have lifted Swiber's order book to around US$1.2 billion.

They are also expected to contribute to the group's financial performance in the current financial year ending Dec 31, 2016.

The group is presently bidding for projects with a combined value of US$3.4 billion, made up of US$1.65 billion for Africa/Europe, US$750 million for Latin America, US$550 million for Southeast Asia and South Asia and US$450 million for the Middle East.

Swiber also said it fully redeemed its Series 16 S$130 million Fixed Rate Notes on June 6.