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Swiber seals $80m pipeline project

Swiber seals $80m pipeline project
Swiber Holdings has sealed a $80m letter of intent to install pipelines and supporting structures for a global energy firm in South America.

The South American firm is a new client for Swiber and the installation work is scheduled to start in the third quarter and due to be completed in the first quarter of 2016.

Under the contract, Swiber will install monobuoys, pipeline-end manifolds and a submarine pipeline.

In the last decade, several South American countries, lacking in capital and technology, have introduced reforms to their energy sector, opening it to private participation and foreign investors. Analysts quoted by Swiber said that when fully implemented, the reforms have the potential to transform the sector and make these countries more competitive.

Swiber has been active in South America and has won contracts for subsea development work including pipeline tie-ins and construction of submarine ducts. The region contributed to 69% of the group’s revenue of $165m in the first quarter of 2015.

The latest project will contribute to Swiber’s new contracts secured since the end of last year and boost the company’s orderbook to approximately $1.9bn.

Darren Yeo, deputy group ceo of Swiber, said South America has one of the largest reserves of crude oil in the world and holds potential for the oil and gas industry.

“We look forward to commencing this project. It signifies our relentless effort to build up our capabilities in the region and to forge new business partnerships in the oil-rich parts of the world,” Yeo commented.

Swiber currently owns a young and modern fleet of 13 construction vessels supported by its in-house offshore support vessels.

TAGS: Asia Offshore