UMW Oil & Gas (UMW-OG) announce that UMW Offshore Drilling (UOD), a wholly-owned subsidiary of UMW Malaysian Ventures (UMV), which in turn is a wholly-owned subsidiary of UMW-OG has received a Letter of Award from Vestigo Petroleum (Vestigo) for a contract for the provision of a Jack-Up Drilling Rig for Vestigo.
The Contract is for the provision of Drilling Rig Services for Vestigo’s Drilling Programme, whereby UMW-OG Group will assign its UMW NAGA 2 for this contract. The Contract is to drill one (1) firm well, commencing end of first quarter of 2017.
UMW NAGA 2 is an independent-leg cantilever jack-up rig that has a drilling depth capability of 30,000 feet and has a rated operating water depth of 350 feet.
The provision of the above mentioned drilling rig services is expected to contribute positively to the earnings and net assets of UMW-OG Group during the contract period for the financial period ending 31 December 2017.
The risks associated with the execution of the Contract are operational and execution risks, which will be mitigated and/or managed by UOD.