Keppel gets RM725.5mil UMW-OG jack-up rig contract

by **Cals** Fri 07 Feb 2014, 08:41

Published: Friday February 7, 2014 MYT 12:00:00 AM
Updated: Friday February 7, 2014 MYT 6:44:59 AM
Keppel gets RM725.5mil UMW-OG jack-up rig contract

PETALING JAYA: UMW Oil and Gas Corp Bhd (UMW-OG) has awarded a contract worth US$218mil (RM725.5mil) to Keppel Corp Ltd’s subsidiary to build its sixth jack-up rig to raise revenue and profit contribution from its drilling operations.
The company said in a statement that the job awarded to Keppel FELS Ltd was for the design, engineering and construction of the rig vessel KFELS B Class jack-up rig.
This is UMW-OG’s third jack-up rig order with Singapore-based Keppel.
It said the purchase of the rig would be funded in part via the proceeds from its floatation last November of some RM2.36bil, while the remaining would be financed by borrowings.
It would pay 20% or RM145.1mil to Keppel upon the award of the contract while the balance of RM580.4mil would be paid upon the delivery, it added.
UMW-OG expected the delivery of the rig vessel by the end-September 2015.
“The rig will enhance the assets portfolio of UMW-OG that would be offered to its clients, apart from the existing assets,” it added.
It expected the agreement to contribute positively to its earnings and net assets for the financial year ending Dec 31, 2015 and onwards.
Its president, Rohaizad Darus, said in a statement issued by Keppel FELS: “The KFELS B Class rigs are efficient drilling platforms with industry-leading features and have been well-received by the market.
“Our first jack-up constructed by Keppel FELS, UMW NAGA 4, is currently deployed in offshore Malaysia while our second rig, UMW NAGA 5, is expected to be delivered in May this year and has already secured a charter from Nido Petroleum Philippines.”
According to Keppel, the KFELS B Class jack-up rig is able to operate in water depths of 400 ft, drilling depth of 30,000 ft and accommodate up to 150 men.