UMW oil & gas to focus on domestic, SEA markets for FY17

KUALA LUMPUR: UMW Oil & Gas Corporation Bhd (UMW) is focused on bidding for tenders in the local market for the financial year ending Dec 31, 2017, to strengthen its presence as a major oil and gas player in the country.

President Rohaizad Darus said the group was also re-exploring the Southeast Asian market, specifically Thailand, Indonesia, Vietnam, the Philippines and Myanmar.

“Our forecast is still based on the local market, but we need to go back to our existing international markets in Southeast Asia.We will also the middle east in future,” he told reporters after the group annual general meeting (AGM) yesterday.

He said that the group currently had 13 local and 20 international tenders, with a total value of RM3.2 billion. Rohaizad revealed that UMW had also secured two contracts worth RM151.08 million from Petronas Carigali Sdn Bhd, to provide jack-up drilling rig services. He said the contracts, scheduled to commence in June this year, would bring the group’s utilisation rate to 100 per cent by early July. On prospects, Rohaizad said despite all the challenges, the year’s market outlook appeared to be better than last year.

“With the likelihood of a continued production limit this year by the Organisation of Petroleum Exporting Countries and other major oil producing nations, oil prices will be sustainable.

“We are already seeing this recovery, as all seven of our drilling rigs are already under contract within just six months of the production cut, compared to only two contracted late last year,” he added.

Meanwhile, at the AGM, the group announced the retirement of Chairman Tan Sri Asmat Kamaludin and the appointment of Datuk Abdul Rahman Ahmad, as his successor. — Bernama