Petra Energy, Uzma JV bags E&P contract from Petros for Block SK433 in Sarawak

Petra Energy, Uzma JV bags E&P contract from Petros for Block SK433 in Sarawak
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KUALA LUMPUR (June 18): A joint venture (JV) between Petra Energy Bhd and Uzma Bhd has secured a contract from Petroleum Sarawak Bhd (Petros) for the exploration, development and production of petroleum in Block SK433, onshore Sarawak.

According to both companies' filings this evening with the local bourse, the 29-year contract was secured by Petra Energy Development Sdn Bhd (PEDSB) and Uzma Engineering Sdn Bhd (UESB) JV — wholly-owned subsidiaries of Petra Energy and Uzma, respectively.

PEDSB will be the operator of the contract on behalf of the JV. Phase 1 of the job is for an initial period of four years, with a one-year extension option. Phase 2 involves development and production activities, which will start upon the successful outcome of Phase 1.

Petra Energy said it is in a good position to undertake the contract given its experience in upstream field development and production in the Kapal Banang Meranti Small Fileds Risk Service Contract since 2012, as well as the operations and maintenance of the Banag oilfield, offshore Terengganu.

"The opportunity to explore, produce and develop the onshore block SK433 is a progression and an extension of its activities within the oil and gas industry. In addition, the Petra Energy group has the right capabilities and partner (UESB), bringing expertise and experience spanning sub-surface know-how, well services capabilities and production optimisation," it said.

Uzma said UESB has capabilities in hydrocarbon production, which includes concessions ranging from heavy oil fields in Inner Mongolia to the marginal field operation via the Tanjung Baram Small Field Risk Service Contract project.

The value of the contract, however, is not determinable, Petra Energy said, as it is based on the production of the asset, although both companies expect the contract to contribute positively to their future earnings.

Petra Energy shares climbed two sen or 2.19% to close at 93.5 sen today, for a market capitalisation of RM300.84 million.

Uzma shares rose one sen or 1.44% to settle at 70.5 sen, giving the company a market capitalisation of RM225.62 million.

Tan Choe Choe