Shah Alam – UMW is positive on securing another contract for NAGA 2 jack-up drilling rig despite the termination of an existing contract with PCPP Operating Company Sdn Bhd (“PCPP”).

Dato’ Abdul Halim Harun, President & Group CEO indicated that a few reasons have contributed to the non-implementation of the contract by PCPP. He said, “The rig builder did not deliver the rig on schedule, while global oil prices and charter rates for jack-up rigs in general have eased since the contract was first signed and therefore lower charter rates were sought by PCPP which we could not meet”.

As NAGA 2 is a new ultra-premium jack-up rig, UMW believes it would be utilised. “We are already talking to other parties – local and foreign oil majors, and we are confident that a contract would be secured soon”, Dato’ Abdul Halim Harun added.