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UMW Oil & Gas reportedly secures charter for Naga 8 jack-up

UMW Oil & Gas reportedly secures charter for Naga 8 jack-up
UMW Oil and Gas (UMW-OG) has secured a charter for its Naga 8 jackup rig, local reports cited Maybank Investment Bank Research as saying.

According to the reports, the research house believed the relatively new jackup could going for under $100,000 a day, on par with the current market rate of $80,000 to $100,000 a day. The contract is from October 2015 to 2017, with a break of six to seven months in between.

“This is positive but not unexpected,” said the brokerage, adding that it makes sense for operators to compromise on rates for utilisation now, especially for jackups under financing, as this will provide cashflow to part cover interest payments and operating expenditure.

The jackup is now on location to carry out its multi-year drilling campaigns at the SapuraKencana-operated SK 408 field, offshore Sarawak.

“75% of its rigs are off-hire. It would be a tough act to secure charter for six idle rigs in the fourth quarter as drilling programmes enter the monsoon period."

Maybank Research expects overall jackup utilisation in Southeast Asia to remain weak till the third quarter of 2016