Highlight Offshore drilling to contribute 60% of Perisai revenue, co seen in the black in 2H

by **Cals** Fri 18 Jul 2014, 01:06

Highlight Offshore drilling to contribute 60% of Perisai revenue, co seen in the black in 2H

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Thursday, 17 July 2014 14:49

SINGAPORE (July 17): Perisai Petroleum Teknologi Bhd’s offshore drilling facilities will contribute 60% of revenue within three years, according to managing director Zainol Izzet Mohamed Ishak.

Zainol Izzet said Perisai intended to narrow its focus on drilling and production as it would let go of its pipe-laying business.

Speaking to reporters yesterday at the sidelines of the launch of Perisai's maiden jack-up drilling rig, Perisai Pacific 101 (PP101), Zainol Izzet said : “In three years time, drilling will contribute 60% of our revenue.”

“We have to be selective and we cannot support investments in all areas…We’ve sold half of the barge for the pipe-laying business, in which, we have placed put options on. The focus moving forward will be on drilling and production,” said Zainol Izzet.

The PP101 is capable of drilling high temperature wells as deep as 30,000 feet and is capable of operating in water depths of up to 400 feet. The rig is also able to house a total of 150 personnel on board as well as a hook-load capacity of 1.5 million pounds.

Zainol Izzet said prospects for Malaysian jack-up rigs was good. He said only two out of the 15 jack up rigs operating here were local entities.

“The prospects for Malaysian jack-up rigs remain very good, which is why we’re continuing to embark on this.

“There are definitely prospects for Malaysian companies to replace these foreign rigs,” Zainol Izzet said.

Following the launch of the PP101, Zainol Izzet was hopeful that Perisai would return to the black by the second half of current financial year ending December 31.

He said the rig would begin contributing to the company’s revenue by August 2014.

“We hope that following the rig’s launch, things will start to turn around and contribute to the revenue of the company,” he said.

Perisai, which had in May this year secured a three-year contract from Petronas Carigali Sdn Bhd worth US$158 million (RM503 million), is eyeing contracts in the Association of Southeast Asian Nations (ASEAN) region.

Perisai expects to land a contract with ASEAN oil and gas players for its second rig that will be launched next year.

On contracts for Perisai's mobile offshore production unit, Zainol Izzet said the company was confident of securing a job by the fourth quarter.

“We’ve bid for a number of projects and we’re currently awaiting results,” said Zainol Izzet.