Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Friday, January 22, 2010

SapuraCrest unit bags US$75b India job

SapuraCrest Petroleum Bhd's 40 per cent-owned unit, Offshore International FZC (OIF) has been awarded a sub-contract worth US$75 million (US$1.00 = RM3.39) by Larsen & Toubro Ltd (L&T).

In a statement today, the company said the sub-contract was for the transportation and installation of four platform jackets for Oil and Natural Gas Corporation Ltd (ONGC) in MHN Field, offshore Mumbai.

"It is part of the main engineering, procurement, installation and commissioning (EPIC) contract which L&T had won from ONGC," SapuraCrest said.

The statement was released after the sub-contract signing ceremony witnessed by Prime Minister Datuk Seri Najib Tun Razak, who is on a four-day working visit to India.

SapuraCrest Executive Vice-Chairman Datuk Shahril Shamsuddin said OIF expected to start the offshore work around mid-November this year using a 160-metre derrick lay vessel called LTS3000.

Its oil and gas ventures in Southeast Asia, Australia, Japan and Russia as well as in India have so far netted contracts worth over US$500 million.

"The latest job will swell our orders in India alone to US$250 million over the past 10 years," he said, adding that it had spent about US$110 million in the country.

Shahril said the venture in India particularly was primed for high growth as it was embarking on joint ventures with local parties there, as part of the company's regionalisation strategy.

"We are upbeat on India. Its oil and gas industry is poised to grow further as regional demand for energy soars, with crude oil and gas output expected to increase.

"The deepwater exploration activities in India and neighbouring countries are also expected to heighten driven by higher oil prices," he said.

Shahril said the company would leverage on the alliance with L&T particularly to leapfrog its presence into the lucrative Middle East market.

He said the catalysts moving forward would be the further deployment of LTS 3000, Sapura 3000 and Quippo Prakash, the 2,000-tonne barge co-owned with Quippo Prakash Marine.

The latter vessel is due for delivery next month.
SapuraCrest started its foray in India in 2001 by providing soil investigation and hydrographic survey services off the country's shores. -- BERNAMA

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