Uzma wins RM100m contract for platform wells plug provision

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KUALA LUMPUR (March 2): Uzma Bhd said its subsidiary Uzma Engineering Sdn Bhd has secured a contract for the provision of platform wells plug and abandonment campaign for Sarawak 2020 from Sarawak Shell Bhd and Sabah Shell Petroleum Co Ltd.

Under the RM100 million contract, Uzma will supply integrated plug and abandonment services for related works at two Shell-operated platforms involving five wells.

Works are expected to commence in April and completed by November this year.

“[The letter of award] is expected to contribute positively to the earnings and enhance net assets per share of the Uzma group for the financial year ending June 30, 2020 and onwards until the expiry of the award," it said in a bourse filing.

In a separate announcement, Uzma said it secured another contract from Petronas Carigali Sdn Bhd for the provision of well testing and tubing conveyed perforating for petroleum arrangement contractors.

Under the RM36 million contract, Uzma shall perform the lightweight well testing services for 2020 and 2021, as per a work order effective from Jan 15, 2020 to March 31, 2021, or until the completion of the scope of works.

It expects the contract to contribute positively to its future performance.

Uzma fell 2.5 sen or 3.55% to 68 sen, giving a market capitalisation of RM217.6 million.