Sapura Energy (SEB) has entered into a Conditional Funding Agreement (“CFA”) with Malaysia Development Holding Sdn Bhd (“MDH”), securing the latter’s commitment to subscribe an amount of up to RM1.1 billion in nominal value of redeemable convertible loan stocks (“RCLS”) in the Company. This investment marks another significant milestone in SEB’s financial restructuring efforts, reinforcing its commitment to long-term sustainability.

MDH, a special purpose vehicle of Minister of Finance (Incorporated), has specified that proceeds of the Subscription are only intended to be used for the settlement or payment of liabilities owed by the SEB Group to Malaysian service providers operating in or supporting the oil and gas sector in Malaysia. This funding is a pivotal step in restoring the financial stability of Malaysian vendors within the oil and gas ecosystem, which had taken years to build.

SEB Group Chief Executive Officer Muhammad Zamri Jusoh said, 
“As a Malaysian company supporting over 2,000 local vendors, we recognise our responsibility to preserve the Malaysian oil and gas ecosystem. Our Malaysian vendors are predominantly small & medium enterprises (“SME”) who have endured significant financial hardship during and after the COVID-19 pandemic and it had always been our intention to fully settle overdue payables to them. We are extremely grateful to MDH for providing this funding, which will allow us to fulfil our commitment to our Malaysian vendors.”

“We are diligently working on a robust Regularisation Plan, which will bring us one step closer to exiting our status as a PN17 company,” Zamri added. “We see SEB’s turnaround as part of the revitalisation of the Malaysian OGSE sector, ensuring it is better positioned to support the nation’s energy security and sustainability goals, ultimately contributing to Malaysia’s economic development.”

SEB supports about 2,300 Malaysian vendors and about 1,800 of these companies are SMEs. The Company has awarded RM7.3 billion in contracts to Malaysian vendors in the last five years.

KeyFacts Energy Industry Directory: Sapura Energy