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35. FinAnCiAl inStRumentS (Cont’D)
(f) Fair values (cont’d)
The following methods and assumptions are used to estimate the fair values of the following classes of instruments:
(i) Cash and Cash Equivalents, Receivables/Payables, and Amounts due from/to related companies and Short Term Borrowings.
The carrying amounts approximate fair values due to the relatively short maturity of these financial instruments.
(ii) Borrowings
36. Segment inFoRmAtion
The fair value of borrowings is estimated by discounting the expected future cash flows using the current interest rates for
liabilities with similar risk profiles.
(a) Business segments:
The Group is organised into four major business segments based on services provided:
(i) Installation of Pipelines and Facilities -installation of offshore platforms and marine pipelines;
(ii) Offshore Oil and Gas Drilling -drilling of offshore oilwells and chartering of rigs involved in drilling offshore oilwells;
(iii) Marine Services -provision of offshore geotechnical and geophysical services to the oil and gas industry, development of
marine technology and marine chartering, specialising on ROVs; and
(iv) Operations and Maintenance -repairs and refurbishment of industrial gas turbines, supply, installation, commissioning and
maintenance of point-of-sale systems for petrol stations and asset management services for offshore installations.
Other business segments include investment holding and provision of management services, none of which are of a material size
to be reported separately. The directors are of the opinion that all the transactions above have been entered into in the normal
course of business on a negotiated basis.
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SapuraCrest Petroleum Berhad
Annual Report 2010