UMW-OG takes delivery of jack-up rig worth US$223m

by **Cals** Thu 01 May 2014, 01:44

Business & Markets 2014

Written by Madiha Fuad of theedgemalaysia.com

Wednesday, 30 April 2014 10:26

SINGAPORE: UMW Oil and Gas Bhd (UMW-OG) has taken delivery of its second jack-up drilling rig worth US$223 million (RM726.69 million) from rig designer and builder Keppel FELS Ltd shipyard here.

UMW-OG president Rohaizad Darus said the addition of Naga 5 to its fleet is in line with the group’s plan to become a regional player.

“We plan to create a balanced contribution in revenue from our domestic and overseas operations. We are on track to fulfil our business expansion plan, not only in terms of asset-building, but also geographically as Naga 5 will be going to the Philippines,” he told reporters at the delivery ceremony yesterday.

Naga 5 will serve a six-week contract in the Philippines. The contract under Nido Petroleum Philippines Pty Ltd will drill the Baragatan prospect on behalf of the SC 63 joint venture.

“Naga 5 will be prepared for mobilisation immediately after delivery and is expected to sail out to the Philippines in the first week of May,” said Rohaizad.

He noted that the jack-up rig is capable of operating in water depths of up to 400ft and drill to a total depth of 30,000ft sub-sea.

“The addition of Naga 5 to our jack-up fleet is another important milestone in our quest to be a regional player as part of our overall goal to become a global oil and gas (O&G) company,” he said.

Rohaizad added that UMW-OG is now better equipped to support and serve companies in the Malaysian O&G sector and across Asia-Pacific.

“Going into the Philippines will enable us to continue to make inroads into new markets, in line with our ongoing mission to develop our technological expertise to become a leading player in the regional O&G industry,” he said.

The addition of Naga 5 brings the company’s total number of jack-up drilling rigs to four, with the others being Naga 2, Naga 3 and Naga 4.

“To further fuel the growth of the company, another three premium jack-up drilling rigs — Naga 6, Naga 7 and Naga 8 — have been ordered with scheduled deliveries in September, December and September 2015 respectively,” said Rohaizad.

Keppel FELS is a subsidiary of Singapore’s Keppel Offshore and Marine Ltd.

This article first appeared in The Edge Financial Daily, on Aprill 30, 2014.