UMW Oil & Gas was awarded with two contracts by Petronas with combined estimated worth of 34.81 million USD. The Malaysian offshore supplier will provide two jack-up drilling rigs for the offshore upstream projects of Petronas. The according to the statements of both companies, the both contracts will commence in June 2017 and the first will commence UMW Naga 3 platform for drilling of 5+5 firm wells, while the second will employ UMW Naga 4 for drilling of 2+3 wells. The new contract will support the group’s 100% utilization rate and will help the cash flow and earnings before interest, taxes, depreciation and amortisation (EBITDA) of the company to return on positive trend.
“The provision of the above-mentioned drilling rig services is expected to contribute positively to the earnings and net assets of UMW O&G Group during the contract period principally for the financial period ending Dec 31, 2017 and the financial period thereafter for the duration that extend beyond Dec 31, 2017”, said the official statement of UMW Oil & Gas.
The offshore drilling rigs UMW Naga 3 and UMW Naga 4 are premium independent-leg cantilever jack-up drilling rigs that have a drilling depth capability of 30,000 feet and has rated operating water depth between 350 and 400 feet.
UMW Oil & Gas Berhad, through its subsidiaries, engages in manufacture of oil country tubular goods and line pipes, oil and gas exploration and development operations, fabrication of oil and gas and other steel structures, provision of oilfield services, and supply of oilfield products. The company was incorporated in 2007 and is based in Kuala Lumpur, Malaysia.