Sunday, September 20

UMW-OG takes delivery of new rig

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KUCHING: UMW OIL & GAS Corporation Bhd (UMW-OG) took delivery of UMW NAGA 6, the first of its two jack-up drilling rig constructed by China Merchants Heavy Industries (CMHI).

According to a press release, the official delivery ceremony was conducted at the shipyard in Shenzen and was attended by senior representatives from both companies. The other rig, also being built at the same yard, UMW NAGA 7 is scheduled to be delivered in December 2014.

President of UMW-OG, Rohaizad Darus said, “While there were some concerns within the industry on late delivery from Chinese shipyards, UMW Naga 6 was delivered on schedule and within cost. The shipyard and our experienced project team worked closely together to ensure not only the rig is completed on schedule but also to incorporate operational requirements of our clients into this new rig to enable it to operate more efficiently.”

UMW NAGA 6 is a CJ-46 class cantilevered jack-up drilling rig with the capacity to operate in 375 feet of water depth and to a drilling depth of 30,000 feet. The rig will be going to Vietnam immediately after delivery to serve the recently awarded contract from PetroVietnam Drilling & Well Services Corporation (PV Drilling) for end clients PC Vietnam Limited and Petronas Carigali Oversas Sdn Bhd.

The contract is valued at US$46.5 million, and is tasked for operations in the Diamond field in offshore Vietnam, for a period of 250 days, with options for up to additional 327 days.

UMW-OG have recorded significant increase in profitability while pursuing the expansion of their fleet size. The Company has also been making steady inroads into regional markets around South-east Asia and UMW NAGA 7, which is currently under construction, was recently awarded a contract by Frontier Oil Corporation for the provision of drilling services in offshore Palawan, Philippines.

Rohaizad added, “The delivery of UMW NAGA 6 will provide us with an additional asset to further accelerate our growth and facilitate the execution of our three-pronged marketing strategy which is to increase the number of international clients, to penetrate more countries in Asia Pacific and Middle East, and to follow existing clients in their overseas operations.

“For example, in addition to UMW NAGA 6 servicing Petronas Carigali in their Vietnam operation, UMW NAGA 5 and UMW GAIT 6 are currently servicing PTTEP Thailand in their Myanmar operation.”