UMW Oil & Gas unit gets 3-year Petronas Carigali contract

PETALING JAYA: UMW Oil & Gas Corp Bhd’s unit UMW Workover Sdn Bhd (UWO) was awarded a three-year contract by Petronas Carigali Sdn Bhd for an undisclosed contract sum.

In a filing with Bursa Malaysia yesterday, UMW Oil & Gas said the contract is for the provision of 340,000 and 460,000 hydraulic workover units (HWUs) to undertake workover services for Petronas Carigali.

“It calls for the use of all or any of UWO’s five HWUs, namely UMW Gait 1, UMW Gait 2, UMW Gait 3, UMW Gait 5 and UMW Gait 6 to undertake workover services, which are services rendered in performing maintenance and/or remedial treatments on an oil or gas well,” it added.

UMW Oil & Gas said the contract, which commenced on Dec 22, 2017, is of an umbrella framework which provides an overarching contractual relationship which may comprise a series of individual orders and call-outs.

“Orders for services under the contract are individually made through call-outs and at stipulated prices. At present there has not been any call-out or work orders for services,” it noted.

UMW Oil & Gas said the contract will not have any effect to the group’s earnings and net assets for the financial period ending Dec 31, 2017, but is expected to contribute positively to its earnings and net assets in the financial periods in the duration of the contract.

Yesterday, UMW Oil & Gas, among the top active counters, slipped 1 sen or 2.41% to 40.5 sen with 103.9 million shares traded.