Scomies - Petronas

Its RSC from Petronas to develop and produce petroleum from the Ophir field, offshore Malaysia, has a tenure of even years with production volumes estimated at 5.1 million barrels.

The development cost is estimated at USD135 million with up to 120% recoverable and first oil expected to be produced in 18 months or Dec 15 2014.

The first 30% of revenue will be distributed to Petronas while the remaining 70% will cover operating expenditure, capex.

Scomies will continue to build up its capability and its looking at brownfield and marginal field opportunities in Malaysia and Indonesia, as well as Russia.

Graphene nano fluids are set to be a game changer in the company as it will help the company to offer new products a formulations and chemicals.

It expects to complete the product testing with Petronas and Myanmar in the third quarter of 2014 which will lead to product commercialization.

In the marine segment, the new accommodation barge is expected to be delivered in July 2014 and put to work by end 2014. It will continue to reduce its presence in the coal logistics business.

It is liked for its strong order book, earnings growth from the Ophir RSC and new grapheme products going forward.

Estimate that the RSC will contributes about rm40 million to rm50 million to Scomi’s bottom line.

Its latest order book stands at rm5.4 billion with Petronas accounting for 48% of the contract value.