Integrated oil and gas services and solutions provider, Sapura Energy Berhad, is leading the way for Malaysian businesses as they recently contracted with the Saudi Aramco Long-Term Agreement (LTA) programme.
To support Saudi Aramco’s offshore projects through engineering, procurement, fabrication, transportation and instillation contracts, the subsidiaries of Sapura Energy selected for the LTA programme included Sapura Fabrication Sdn Bhd and Sapura Saudi Arabia.
The LTA programme will be for six years with options for extension.
Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsddin said, “This win is a major milestone for Sapura Energy in line with out strategy to grow the business and deepen our presence in the Middle East.”
The LTA agreement with Sapura Energy also opens up opportunities for small and medium enterprises (SMEs) to export to Saudi Arabia and deepen the relationship between Malaysia and the Middle East overall.
There are over 900,000 establishments of SMEs in Malaysia which amounts to over 90 percent of business establishments in the country according to SMEinfo.
With 89.2 percent of SMEs in the services sector and 5.3 percent in the manufacturing sector, SMEs have the increasing ability to capitilise on growing opportunities to export to the Middle East and help continue to contribute to Malaysia’s gross domestic product (GDP).
The oil and gas industry in Malaysia will benefit from the Sapura’s LTA contract as it will contribute to the growth of the industry as Monster Employment Index recorded 19 consecutive months of year-on-year growth.
Due to the stabilization of oil prices leading to new investments and operations the industry has a recorded positive growth of 8% on a six-month basis.
Sapura demonstrates their contribution to Malaysia continuously through business expansion which allows greater employment rates and positive progress on corporate social responsibility initiatives.