Swiber bags US$310 million contract, its second largest

SINGAPORE - Mainboard-listed Swiber Holdings Limited announced on Thusrday (Feb 12) that it has secured its second largest contract win in the group's corporate history - an Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) deal worth approximately US$310 million (S$422 million) from a national oil company in South Asia.

The project involves a full suite of EPCIC services for 8 new platforms and associated pipelines required for the development of a new offshore gas field located in South Asia. The engineering work will commence immediately with overall project completion targeted in March 2017.

With this project, Swiber's order book will rise to approximately US$1.6 billion- a new record for the group.

Said Mr Francis Wong, group chief executive officer and president of Swiber: "This new contract is awarded by the national oil company for which we had previously completed a floatover platform installation project... This is a testament to the customer's trust in Swiber's capabilities."

"Despite the prevailing headwinds caused by the decline in oil prices, Swiber has continued to successfully secure new projects. In December 2014, the Group was awarded its largest contract win - a US$710 million EPCIC project in West Africa. Swiber is building a strong momentum in our project wins as this new contract follows on the heels of the West Africa award.

"As an established provider of EPCIC services for shallow water oil and gas field development, we believe that Swiber occupies a space in the offshore service value chain that will be less susceptible to spending cuts by the oil & gas companies."

The new contract is expected to begin contributing to the Group's earnings per share in the current financial year ending 31 December 2015.