UMW O&G to clinch more contract awards, positive prospects

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KUCHING: UMW Oil and Gas Corporation Bhd (UMW O&G) is poised to clinch more works especially for a longer charter period for its Naga Two and Naga Three drilling rigs while its growth outlook remained strong as the company had just secured long-term charters for two out of their existing four drilling rigs.

Alliance Research Sdn Bhd (Alliance Research) in a report said the company is expected to reveal more contracts award for its two rigs namely Naga Two and Naga Three as both are on spot charter contracts.

The research firm added that the oil and gas company was also looking to add on new rigs which would enhance its earnings in the future.

Alliance Research believed that the company’s growth outlook remained strong as the company had just secured long-term charters for two out of their existing four drilling rigs with its latest outstanding orderbook stood at RM1.5 billion.

In the meantime, it was reported that UMW O&G had secured a RM22.7 million contract from Nido Petroleum Philippines Pty Ltd (Nido Petroleum).

UMW O&G in a statement earlier said the contract secured by its unit, UMW Standard Drilling Sdn Bhd is expected to witness the deployment of its Naga Five rig to drill the Baragatan prospect, which is located offshore Palawan, Philippines.

The work is expected to commence in June 2014 for a duration of about six weeks.

The company noted that the award of the contract would enable the company to penetrate new market in the growing Asia Pacific region which was in line with its regional expansion plans.

On the other hand, Alliance Research noted that the contract would be carried out using the company’s soon-to-be delivered Naga Five premium jack-up drilling unit which is under construction at Singapore’s Keppel FELS Ltd.

Alliance Research observed that the latest job is positive for the company as it would enable the company to utilise its rig to work straight-away, after its delivery by May 2014.