UMW Oil & Gas Plans to Expand Rig Fleet to Improve Profitability
Malaysia-listed UMW Oil & Gas Corporation Bhd (UMW-OG), a firm offering drilling and oil field services, aimed to expand its fleet of drilling rigs, Rohaizad Darus, the company's president told Malaysian news agency Bernama late last week.
"We're in dire need in increasing our assets now especially in drilling rigs. All our rigs have been already contracted out ... Any addition of drilling rigs would add significantly to its bottomline," he told Bernama on the sidelines of the inaugural 'Spotlight on Malaysia' Forum organized by Bursa Malaysia Thursday.
UMW-OG, which derived about 94 percent of its revenue from its rig business, plans to acquire a few more drilling rigs by end of this year, Rohaizad said.
UMW-OG's current drilling fleet comprises Naga 1 (mid-water semisub), and three jackups Naga 2 (350' ILC), Naga 3 (350' ILC) and Naga 4 (400' ILC). A fifth rig, Naga 5 (400' ILC), which is contracted to drill the Baragatan prospect on behalf of the Service Contract 63 Joint Venture in the Philippines in June, is now undergoing construction at Singapore's Keppel Shipyard, with the jackup due for delivery in May.
Meanwhile, the company, a subsidiary of UMW Holdings Berhad, is in various stages of the bidding process for contracts worth more than $0.89 billion (MYR 3 billion).
"We're looking at countries we're already in such as Malaysia, Thailand, Indonesia and Vietnam," Rohaizad said, adding that the current orderbook of $0.434 million (MYR 1.45 billion) would keep the group busy for at least two years.
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