Kencana ... Feb12

Kencana Petroleum and SapuraCrest Petroleum are the likely candidates to secure licences to develop the new marginal oilfields.

More brownfield services jobs worth between RM3 billion and RM4 billion are projected to be awarded to local oil and gas services providers in 2012.

Given their strong financial asset backing and job experiences, Kencana Petroleum Bhd and SapuraCrest Petroleum Bhd, which are in the midst of consolidation, are the likely candidates to secure licences to develop the new marginal oilfields.

The two companies, together with Petrofac of Britain, were the first recipient of the newly introduced risk service contract (RSC) licence to develop the Berantai oilfield offshore Peninsular Malaysia, as announced in January 2012.

Kencana Petroleum and SapuraCrest Petroleum are on the verge of a merger, slated to be concluded in the first quarter of 2012.

In August 2011, Petronas also awarded the RSC licence to a group comprising Dialog Group Bhd, Australia-listed ROC Oil and its exploration and production arm, Petronas Carigali Sdn Bhd, to develop the Balai cluster oilfield offshore Sarawak. These fields are fast-track projects that are expected to commence oil and gas production in one or two years versus the more sophisticated deepwater fields, which may take three to five years to kick start.

There will be the listing of a merger entity between SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd called SapuraCrest Kencana Petroleum in March 2012.