SapuraKencana’s gas venture gets off the ground


Dateline 2015-11-25 , The Edge:

LAST Wednesday, oil and gas outfit SapuraKencana Petroleum Bhd announced that it had received the green light from Petroliam Nasional Bhd (Petronas) for a field development plan (FDP) for the SK310 B15 gas project off Sarawak.

Shahril: We will have clear visibility of the cash flow once the development of these discoveries commences

The announcement, however, did not have the expected impact on the stock, which shed seven sen to close at RM2.19 last Thursday.

Naturally, SapuraKencana will not see any contribution from the development of the gas field in the near term, but it is likely to become a fresh recurring income source for the group in two years.

The share price had in fact rebounded from a historical low of RM1.47 recorded on Aug 25, gaining more than 50% — that is  until last Thursday — possibly buoyed by the impending news of the FDP.

President and CEO Tan Sri Shahril Shamsuddin tells The Edge: “This is a significant milestone as we will begin the monetisation of the seven gas discoveries we have to date off Sarawak. First gas is expected to flow in the final quarter of 2017 and we will see healthy cash contributions over the life of this development.

 

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