Monday, August 8, 2011

SapuraCrest inks RM400m deal to buy Clough Marine Construction assets

KUALA LUMPUR: SAPURACREST PETROLEUM BHD [] has inked a conditional agreement to acquire Clough Limited's marine CONSTRUCTION [] and offshore engineering operations in Australia, UK and US for a cash consideration of A$127 million (RM400 million).

In a statement Monday, Aug 8, SapuraCrest said that besides providing a global platform, the acquisition also provides an opportunity for the Group to expand its activities in subsea and deepwater segments.

It said the wider capabilities, network and asset base following the acquisition would strategically position it to tap opportunities to expand its regional footprint in the key offshore markets of Indonesia, Vietnam, Thailand, China, Australia and India, as well as Brazil.

It said the Malaysian market, which currently accounts for a substantial portion of the company's order book, would continue to be a priority given the increasing job prospects.

SapuraCrest executive vice-chairman and president Datuk Shahril Shamsuddin said that the acquisition was timely given the solid prospects offered by key offshore markets over the next five years as well as the growing potential of upstream petroleum activities.

'Clough's marine construction business will undoubtedly complement the group's existing assets and services, which are already well-poised to take advantage of the anticipated uptrend in the sector.

'What's more, we will have strategic access to a team of highly qualified professionals as well as key customer relationships in Australia thanks to Clough's experience and reputation in onshore and offshore EPC (engineering, procurement and construction) activities dating back 90-odd years,' he said.

Shahril said the Australian market was already a familiar one to SapuraCrest's IPF division, and its flagship vessel Sapura 3000 had achieved an impressive track record which includes the recently completed RM512 million Devil Creek Development Project involving transportation and installation of offshore facilities.

'Additionally, Sapura 3000 will soon be providing offshore transportation and construction activities worth RM482 million for the Montara Development Project and is anticipating to secure jobs for the Gorgon offshore natural gas project in Western Australia slated to begin in 2013.

'This comes close on the heels of the Group submitting tenders for offshore Brazilian jobs with the country's oil major Petrobras,' he said.

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