Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on March 13, 2018

KUALA LUMPUR: Oil and gas service provider T7 Global Bhd has bagged a three-year umbrella contract from Petronas Carigali Sdn Bhd for the provision of a hydraulic workover unit (HWU).

In a filing with Bursa Malaysia yesterday, T7 said Petronas Carigali awarded the umbrella contract to its wholly-owned subsidiary Tanjung Offshore Services Sdn Bhd (TOS) on Feb 6.

“The umbrella contract price will be as per work order request at the full discretion of Petronas Carigali. As such, there is no firm value for the umbrella contract,” it added.

The umbrella contract runs from Feb 6, 2018 to Feb 5, 2021, with an option to extend for an additional one year. It is also conditional upon TOS maintaining a valid licence with Petroliam Nasional Bhd.

T7 said the umbrella contract awarded for provision of a HWU is to perform well intervention activities to repair or maintain oil wells. In addition to the type of HWU units of 150k, 225k and 460k, TOS is awarded for type HWU 600k where it can perform higher pull and push capacity than HWU type 150k, 225k and 460k, it added.

As it is the prerogative of Petronas Carigali to decide the timing of the required services, T7 warned that a delay will directly lead to a delay in revenue recognition.

“TOS will undertake all the necessary efforts to closely monitor the request from Petronas Carigali,” it added.

“While the group has successfully secured several contracts during the period, we are mindful that majority of the contribution will only be realised in 2018 and beyond. Diversification into new revenue streams which provide recurring income is our priority, while efforts to replenish the order book continues,” said T7 executive deputy chairman Tan Sri Tan Kean Soon in a separate statement.

 

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