KUALA LUMPUR (July 16): Reservoir Link Energy Bhd said its unit has received a work order contract from Petronas Carigali Sdn Bhd.

In an exchange filing to Bursa Malaysia today, the group said the work order awarded to wholly-owned subsidiary Reservoir Link Sdn Bhd (RLSB) was for the provision of annulus wash and cementing assurance for Sepat Derisk and Early Production System, for Petronas Carigali.

“The scope of works for the work order above is to provide three perforate, wash and cement jobs for Sepat-9 and Sepat-10 wells. The value will be based on the work order prices upon delivery of satisfactory performance of the scope of works,” it said.

It noted that the work order will expire on Dec 31, 2020.

The group added that the risks for the contract include execution risks such as availability of skilled manpower and materials, changes in cost of manpower as well as materials and changes in political, economic and regulatory conditions.

“RLSB has, throughout the years, established its track record and expertise to undertake these projects. As such, the management believes that RLSB is able to mitigate the above mentioned risk factors.

“The work order secured will not have any effect on the issued and paid-up capital of the company. However, the work order is expected to contribute positively towards the earnings of the company for the current financial year.

“The board of directors of the company is of the opinion that the acceptance of the work order award is in the best interest of the company,” said the group.

At noon break, shares in Reservoir Link fell 1.5 sen or 2.91% to 50 sen, valuing the group at RM142.5 million. It saw 22.94 million shares traded.