UMW EXERCISES OPTION TO CO-OWN ANOTHER JACK-UP RIG
Shah Alam, 18 April 2008 – UMW today announced that its wholly-owned subsidiary, UMW Naga Two (L) Ltd has exercised the call option granted by Standard Drilling Far East Pte Ltd (“SDFE”) on 31 January 2007 to jointly own a jack-up drilling rig with Standard 3 Pte Ltd (“SD3”) which is scheduled to be completed by July 2009. SD3 is a wholly-owned subsidiary of SDFE, and is incorporated in Singapore. UMW Naga Two has nominated UMW Naga Three to purchase 51% equity interest in SD3 at an option price of USD40,785,000.
With this acquisition, UMW will now co-own two jack-up drilling rigs, one semi-submersible drilling rig and three hydraulic workover rigs. These rigs are expected to command favourable day rates and utilisation levels, given the growing demand for offshore exploration and development activities in Malaysia and the region. UMW also reinforces its position as the largest owner of drilling rigs in Malaysia.
The co-ownership of this second jack-up drilling rig is expected to enhance UMW’s oil and gas profitability as it becomes fully operational in the latter part of 2009. The oil and gas division which started only 5 years ago, now contributes almost a quarter of the Group’s net profits.
