KUALA LUMPUR (April 9): Sapura Energy Bhd (KL:SAPNRG) said on Wednesday that it had secured a contract worth RM40 million for maintenance, construction and modification services for offshore facilities in Peninsular Malaysia.

The contract was awarded to its operations and maintenance (O&M) arm Sapura Fabrication Sdn Bhd, according to its media release. It did not disclose the vendor.

The contract is set to begin on March 19 and will span six months, with an option for a six-month extension.

The scope of work includes topside maintenance, facilities improvement, hook-up and commissioning for both brownfield and greenfield facilities, riser maintenance, pig trap system maintenance and living quarters upkeep, Sapura Energy noted.

It will also cover project management, engineering, construction management for both onshore and offshore activities, as well as the provision of tools and services.

“We truly appreciate the continued trust and support from our clients and remain fully committed to delivering excellence with the highest safety standards,” said Nasri Mehat, the chief executive officer for O&M at Sapura Energy.

Sapura Energy, which has been in Practice Note 17 (PN17) status since May 2022, is currently finalising its regularization plan.

The group has already rolled out its reset plan — debt restructuring initiatives — which have received approval from most financiers and approval of a composite scheme of arrangement by creditors and the High Court in February.

Additionally, Sapura Energy secured a conditional funding agreement from Malaysia Development Holding Sdn Bhd, a special-purpose vehicle under the Ministry of Finance, for up to RM1.1 billion in redeemable convertible loan stocks, which will be used to settle payments to Malaysian oil and gas vendors.

Shares of Sapura Energy gained half a sen, or 12.5%, to close at 4.5 sen on Monday, valuing it at RM826.92 million.