KUALA LUMPUR (May 15): UMW Oil & Gas Corp Bhd (UMWOG) has bagged two contracts with a combined estimated worth of US$34.81 million (about RM151.08 million) from Petronas Carigali Sdn Bhd. UMWOG will provide two jack-up drilling rigs to support Petronas Carigali's offshore upstream projects.

UMWOG told Bursa Malaysia today that Petronas Carigali awarded the contracts to UMWOG's wholly-owned unit UMW Offshore Drilling Sdn Bhd. UMWOG said both contracts, which start next month (June 2017), will involve its jack-up drilling rigs known as UMW Naga 3 and UMW Naga 4.

"The provision of the above-mentioned drilling rig services is expected to contribute positively to the earnings and net assets of UMW O&G Group during the contract period principally for the financial period ending Dec 31, 2017 and the financial period thereafter for the duration that extend beyond Dec 31, 2017," UMWOG said.

According to UMWOG, UMW Naga 3 will drill five oil and gas wells with the option of undertaking six additional wells.

UMWOG said UMW Naga 4 had been assigned to drill two wells with the option of undertaking three additional wells.

At Bursa Malaysia, UMWOG's share trade was halted today from 9am to 10am.

At 11:30am, the stock rose two sen or 3.28% to 63 sen, which values the group at RM1.33 billion.

The stock saw some eight million shares transacted.