UMW Subsidiary Signs Jack-up Rig Contract Worth USD170 Million With PCPP
12 August 2008, Batam, Indonesia – UMW Standard Drilling Sdn Bhd, a joint-venture between UMW Corporation Sdn Bhd and Standard Drilling ASA of Norway, today signed a contract worth USD170 million with PCPP Operating Co Sdn Bhd (PCPP) for the services related to the new high-spec-high-efficiency, jack-up drilling rig NAGA 2.
PCPP is a joint venture between Petronas Carigali of Malaysia, Petrovietnam (Vietnam) and Pertamina (Indonesia).
“We are delighted to be working with PCPP and tapping on their unique set of industry expertise backed by three of the regional heavyweights in Oil & Gas,” said Mr. Zulkifly bin Zakaria, Executive Director, Head of Oil & Gas Division, UMW Corporation Sdn Bhd.
“The addition of NAGA 2 to our operations is well-timed, as we aspire to be the leading drilling contractor and expand our fleet of drilling rigs to cater to the increasing exploration and production activities in the region.”
“We are very excited with the awarding of this contract and have already started preparations for the operations of NAGA 2 such as recruitment and training processes,” added Mr. Zulkifly.
Mr. Zulkifli signed the contract on behalf of UMW Oil and Gas while PCPP Operating Company was represented by its General Manager, Mr. Foo Wah Yang.
NAGA 2 is a high-spec-high-efficiency newly built rig that will be mobilised to Block SK 305 at Offshore Bintulu, Sarawak in December this year to spud the first exploration well in January 2009 for warming up and then it will be assigned to the D30 oilfield to drill seven development wells until 2010.
NAGA 2 is a symbol of how well UMW’s Oil & Gas business has been progressing recently, backed by global oil prices and an aggressive expansion strategy in the face of increased exploration and drilling activities globally.
The Oil & Gas Division of the UMW Group was established in 2002 and was designed to complement the upstream sector of the oil & gas industry, through five main activities – Manufacturing of OCTG and Line Pipes, Exploration Operations, Fabrications, Provision of Oilfield Services and Supply of Oilfield Products.
UMW’s Oil & Gas division started venturing into exploration operations in 2005 via a joint-venture with Japan Drilling Company to co-own and operate NAGA 1, a semi-submersible rig. NAGA 1 is currently leased to Petronas Carigali for twenty firm wells, with a further option for another twenty wells which will keep it fully utilized until 2010.
