KUALA LUMPUR: UMW Oil & Gas Corporation Bhd (UMW-OG) wholly owned UMW Workover Sdn Bhd (UWO) has been awarded a contract for the provision of 460K Drilling Hydraulic Workover Unit (HWU) for Petronas Carigali Sdn Bhd (PCSB).
In a filing to Bursa Malaysia, UMW-OG said the contract is for the provision of a HWU to undertake workover services for PCSB under an umbrella contract.
UMW-OG will assign its HWU, UMW Gait 6 to undertake workover services, in particular drilling with pull capacity at a maximum of 460,000 lbs.
Workover services are services rendered in performing maintenance and/or remedial treatments on an oil or gas well.
It said commencing from February 6, the contract has a term of three years with an option to extend for a further one year.
UMW-OG said on assumption that services under the contract are requested by PCSB, the contract is expected to contribute positively to the earnings and net assets of UMW-OG Group for the financial period ending December 31, 2018 and the financial periods in the duration of the contract as well as for the extension, if the option to extend is exercised.