UMW Oil & Gas awards US$218m contract to Keppel subsidiary

KUALA LUMPUR: UMW Oil & Gas Corporation Bhd (UMW-OG) has awarded a US$218mil contract to Keppel Corporation Ltd's subsidiary to build a rig vessel as it seeks to expand its drilling operations.
It said on Thursday the contract awarded to Keppel FELS Ltd was for the design, engineering and construction of the rig vessel KFELS B Class jack-up rig.
"The purchase of the rig vessel by UD Drilling 8 (L) Ltd will be funded in part by proceeds from the company's recent initial public offer with the balance to be financed by borrowings," it said.
UMW-OG said the purchase of the rig vessel was in line with the group's plan to raise revenue and profit contributions from its drilling operations.
It added the rig would boost its assets portfolio to be offered to its clients, apart from the existing assets including that of drilling rigs, workover rig as well as semi-submersible rigs.
The rig would also facilitate UMW-OG's expansion specifically in Malaysia and globally, it added.