Sapura Energy Berhad, a Malaysian integrated oil & gas services firm, is reportedly seeking partners for its drilling segment as the company rigs are presently being underutilized.

Reports cite, the company is already in discussions with a couple of prospective parties that have expressed their interest in partnering up with Sapura’s drilling arm. Moreover, Sapura Energy is reportedly also contemplating on the sale of a portion of the drilling business.

According to a report by The New Straits Times, the company currently owns about 16 assets inside its drilling segment which could be utilized over a duration of around 15 to 20 years. The rate of utilization of the company’s assets currently stands at about 35%, accounting for approximately six or seven assets.

The President & Group CEO of Sapura Energy Berhad, Tan Sri Shahril Shamsuddin stated that while the firm is in discussions with prospective partners, the price must be just right. It also would open up the company to new markets and boost its competitiveness in the process.

Reportedly, the company’s drilling segment is one of the group’s primary business alongside its exploration & production (E&P) as well as engineering & construction (E&C). Currently, the company is also in the middle of completing the sale of its 50% stake in E&P business unit, named as the Sapura Upstream Sdn Bhd, to Austrian integrated oil and gas company OMV Aktiengesellschaft.

Moreover, earlier this month, the company also signed a share subscription agreement as well as shareholders’ agreement along with OMV AG to establish Sapura OMV Upstream, a joint venture (JV) between the two companies.

The company would reportedly be receiving around $975 million in proceeds under the agreements, comprising the Austrian company’s subscription payment for the newly issued company shares in the JV of about $540 million, additional consideration of nearly $85 million & repayment from intercompany debt refinancing of about $350 million.

According to reports, further details of the discussions related to drilling segment partnership have not been released yet.