The capex comes from the MYR1.7bn raised from its listing last November. "We have already used more than MYR600m of the proceeds and now we're allocating the rest for 2014 capex," president Rohaizad Darus was quoted as saying.
The group plans to build its asset base by increasing the number of its drills from the existing five this year. Rohaizad said with every additional rig added to its fleet, the group would be able to expand its revenue base by 20%.
UMW Oil & Gas is eyeing a bigger market share, both locally and in Southeast Asia, he explained. The group has established presence in Mynmar, Thailand, Indonesia, Vietnam and Turkmenistan.
"Our plan is to expand into Palestine by the middle of this year and we are moving a rig into Vietnam in April. Another rig is coming from Singapore, to be located in the Philippines," he said.
Rohaizad said about a third of the group's revenue was derived from overseas business last year, while the remaining 66% came from Malaysia. It however intends to spread the contribution evenly this year.
"We’re looking at countries we’re already in such as Malaysia, Thailand, Indonesia and Vietnam. We’re in dire need of increasing our assets, especially in drilling rigs. All our rigs have been already contracted out," he said.
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