CREST PETROLEUM SEEKS RM1B WORTH OF CONTRACTS

By KAMARUL YUNUS

CREST Petroleum Bhd (Crest), following the acquisition of Sapura Energy Sdn Bhd, is now actively seeking to fill its order book to reach RM1 billion servicing the regional oil and gas sector.

Crest chief executive officer Zainol Izzet Mohamed Ishak said the company is aggressively bidding for contracts from oil and gas companies operating in Malaysia and South-East Asia. Speaking to newsmen after Crest’s extraordinary general meeting (EGM) in Kuala Lumpur yesterday that approved the Sapura Energy acquisition, Zainol said it provides the company the potential to become a leading player in the services sector of the oil and gas industry. “I am quite confident that Crest would secure more contracts following our successful acquisition of Sapura Energy,” he said.

He said the company is studying ways to capitalise the opportunities in Sudan. Crest executive vice chairman Datuk Shahril Shamsuddin said the new-look Crest will focus its activities in stretches between India and New Zealand. “At present, we are looking at the potential areas in Indonesia and areas between India and New Zealand,” he said.

He said while engineering will be the company’s new focus, offshore drilling, its long-time core activity, will continue to be its priority. Other focus would be on marine engineering, offshore installation and construction and geographical seabed survey. Crest, a listed subsidiary of Sapura Group of Companies, is one of the largest local oil and gas well drilling and marine construction contractors in Malaysia. On whether the acquisition of Sapura Energy would help Crest make a turnaround, Shahril, who is also Sapura Group president and chief executive officer, said the company has already made a turnaround in its second quarter, with its turnover reaching between RM500 million and RM700 million.

According to Shahril, the Sapura Energy acquisition marks a milestone for Crest in making it Malaysia’s leading integrated oil and gas services provider. “Firstly, it completes the suite of services that make Crest one of the leading fully integrated service providers in the industry “It is the last piece of the puzzle that strengthens our long-term strategy as a service provider. It enables Crest to address as regional market player effectively as it has now a pool of expertise and assets,” he said.

The acquisition of 100 per cent equity interest in Sapura Energy costs RM135.5 million together with a deferred contingent consideration of up to RM14.3 million and the obligation by Crest to pay Sapura Holdings Sdn Bhd RM36.5 million for Crest to replace Sapura in respect of shareholders’ advances. Of the purchase price, RM20.3 million shall be satisfied by Crest via the issuance of 20,325 million Redeemable Cumulative Convertible Preference Shares (RCCPS) of 10 sen each at an issue price of RM1 per RCCPS and the balance by cash.