Eleven months after starting the fabrication of its first tender assisted drilling rig, the KM-1, Kencana Petroleum through its wholly-owned subsidiary, Kencana HL Sdn Bhd TODAY launched the construction of its second rig in the 1st steel cut ceremony held in its Fabrication Yard in Lumut Port Industrial Park near Lumut. Similar to KM-1, the new rig comprises of self erecting tender rig and derrick equipment set.
The project that is expected to be completed in May 2010 is in line with the Company's growth strategy to strengthen its marine engineering business that includes rig fabrication, refurbishment and conversion of marine assets as well as repair and maintenance. Kencana expects by 2011, this segment, including the charter of drilling rigs will contribute significantly to group's turnover. KM-1 and this new rig when put in the water will further boost Kencana’s effort to balance lumpy and long-term contracts to keep revenue stream up.
The construction of the second rig within short interval from the first reflects Company's maturity in the marine construction discipline and the ability of its people to learn and build necessary competencies required. The project also augurs well in term of local socio-economic development as it will provide more job opportunities for locals around Lumut and Sitiawan areas.
The new rig when completed, 16 months from now will have a length of 320 feet and breadth of 100 feet. On separate note, the construction of KM-1 has been progressing as per planned, currently at 70% mark and look set to meet its October 2009 completion target date.
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