Which Malaysian firms are poised to benefit from Saudi Aramco projects?

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Sapura Energy and Malaysia Marine and Heavy Engineering Holdings Selected for Saudi Aramco Long-Term Agreement Programme

Sapura Energy Bhd and Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) are positioned to benefit from upcoming Saudi Aramco projects. Both companies have been selected for Saudi Aramco's Long-Term Agreement (LTA) programme, which grants them eligibility to bid for offshore projects in the kingdom. These projects represent a significant potential value, estimated to be worth as much as US$150 billion over the next decade.
Selection for Saudi Aramco's LTA Programme

The inclusion of Sapura Energy and MHB in Saudi Aramco's LTA programme signifies a crucial opportunity for these Malaysian firms. This programme is a key mechanism through which Saudi Aramco, the world's largest oil producer, procures services and equipment for its extensive offshore exploration and production activities. Being part of this established framework allows the companies to be considered for a substantial pipeline of future work.
Potential Scale of Saudi Offshore Projects

The offshore projects within Saudi Arabia that Sapura Energy and MHB can now bid for are considerable in scale. Over the span of 10 years, the total value of these projects is projected to reach an estimated US$150 billion. This significant figure underscores the immense potential for contract awards and the substantial revenue streams that could be generated for the selected LTA participants.
Broader Oil and Gas Sector Outlook

The selection of these Malaysian companies occurs within a context of an improving global oil and gas sector outlook. AmInvestment Bank Bhd recently upgraded its rating for the sector to 'overweight' from 'neutral'. This optimistic revision is attributed to rising asset utilisation rates globally, which are supporting improved financial results for service providers. The bank noted that rig charter rates are beginning to increase as utilisation rates tighten towards 70 per cent, with older rigs being retired and new rig construction slowing.

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Which Malaysian firms are poised to benefit from Saudi Aramco projects?

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