In a press release following its AGM, the group said it "believes that oil price will remain volatile in the medium term driven by fundamental supply and demand dynamics".
Although the rebalancing of these factors is seen triggering a return of investment interest in offshore development projects, Sapura Energy believes "the activity levels will remain subdued in the short term and competition will remain intense".
It noted that the group has been competitive in securing new work worth MYR6.3bn ($1.5bn) for FY2017. Notable wins include the Trans Anatolian Gas Pipeline in Turkey, EPCIC of B-127 Project in India, KMZ sour gas pipeline in Mexico, long-term Plug and Abandonment contract in Brunei, and decommissioning work in Malaysia, Brunei and Australia, Sapura Energy said.
In the Exploration and Production (E&P) segment, the group said it has made significant progress in commercialising their gas fields, with the B15 SK310 development on track for first gas by the third quarter of this year.
Additional gas discoveries for SK408 offshore Sarawak also enhances its position as an Asian-based independent and the group continues to leverage on its in-house expertise to identify new opportunities to add further to Sapura Energy's portfolio of resources and reserves, it concluded.
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