Friday 29 Mar 2024
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KUALA LUMPUR (June 16): Petra Energy Bhd has bagged a technical service contract from Petroliam Nasional Bhd (Petronas) to provide services for the latter's oil field worth an estimated US$40 million (RM170.8 million).

In a filing with Bursa Malaysia, Petra Energy said its wholly-owned subsidiary Petra Energy Development Sdn Bhd (PEDSB) had received and accepted a letter of award on June 4 from Petronas, in regard to the continuation of Banang field production to PEDSB under a technical service agreement.

The two-year contract will come into effect on June 29, 2020 and will end on June 28, 2022.

Under the contract, PEDSB, on behalf of Petronas, will provide services to operate and maintain the Banang field.

The main scope of works to be undertaken are production, storage and offloading facilities, wells and reservoir surveillance, production planning and forecasting, routine operations and maintenance, logistics, and inventory and warehousing.

Petra Energy said the contract is expected to contribute positively to its earnings and net assets per share for the duration of the contract.

“The board and management of Petra Energy appreciates the support that Petronas has given to the group and the confidence that it has placed in Petra Energy,” it added.

“PEDSB is in an ideal position to undertake the operation and maintenance of the Banang field after having an exposure to the upstream field development and production via a thirty percent (30%) Joint Venture in the Kapal Banang Meranti Small Fields Risk Service Contract.

“The opportunity to operate and maintain Banang Field is a natural progression and an extension of its services within the oil and gas industry. In addition, the Petra Energy group has the right capabilities and asset such as the Mobile Offshore Production Unit (MOPU) to undertake the scope of works under the terms of the contract,” it added.

At noon break, Petra Energy's share price rose 2.5 sen or 3.57% to 72.5 sen, bringing its market capitalisation to RM234.29 million. Some 182,400 shares were traded.

The stock has risen 81% from its recent low of 40 sen on March 19.

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