KS Energy to Provide Land Rig for Qatar-Based Company
KS Energy Services has secured a contract to provide an onshore land drilling rig to a Qatar based oil & gas company. The total value of the contract is approximately US $7.9 million comprising equipment, parts, commissioning, transportation, set up and project management. The Company will be paid in full upon completion of the project.
Mr. Chew Thiam Keng, the Managing Director of KS Energy commented, "The buoyant oil & gas industry in the Middle East offers tremendous business opportunities for our Group. This Contract reflects the success of our expansion into the lucrative Middle Eastern oil & gas market and we expect to grow our involvement as we work towards securing more oil & gas related projects from our Middle Eastern customers."
Mr. Chew added, "We have a proven track record of procuring and supplying complex offshore rigs and related assets to our global customers in the oil & gas industry. The provision of an onshore land drilling rig broadens the range of products and services available to our customers. Going forward, we will continue to actively pursue the vast land-based oil & gas opportunities in the Middle East."
KS Energy is expected to deliver the onshore land drilling rig in the first quarter of
financial year 2006. As such, the contract is not expected to have a material impact on the Group's earnings per share or net tangible assets for the financial year ending December 31, 2005.