The company said in a stock market announcement that it had secured the contract for provision of drilling services for 18 months from Petronas E&P unit Petronas Carigali but did not disclose the contract value.
It added that it would deploy the UMW Naga 7 for the job. “The provision of the drilling rig services is expected to contribute positively to the earnings and net assets of UMW-OG during the contract period for the financial period ending 31 December 2017,” said UMW-OG.
The UMW NAGA 7 rig is one of UMW-OG's large fleet of jack-up drilling rigs that is suffering from low utilisation rates at the moment.
And the situation is not expected to improve, with analysts predicting that the demand for jack-up rigs in Malaysia will fall to six units this year from eight in 2016, while the Southeast Asian market for jack-up rigs is also expected to continue to be oversupplied and suffer from some of the lowest utilisation rates in the world.
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