KUALA LUMPUR (March 9): Uzma Bhd has won a RM23 million contract from Mubadala Petroleum’s MP B5 (Thailand) Ltd for the provision of coil tubing services.
The contract awarded to Uzma’s wholly-owned subsidiary, MMSVS Group Holding Co Ltd, is valid until Feb 9, 2023 with a two-year extension option.
“This is a strategic win for Uzma to grow its core upstream services in the regional market,” Uzma group chief executive officer Datuk Kamarul Redzuan said in a statement.
The group said that with this contract, it has secured three contracts with an accumulated value of RM160 million since last week.
“The contracts cover well plug and abandonment (P&A), coil tubing services and well testing services, which are core upstream services provided by Uzma.
“This will position Uzma on the trajectory to become a regional OGSE (oil and gas services and equipment) player in the upstream value chain,” it added.
Last week, the group announced that one of its units, Uzma Engineering Sdn Bhd, had been awarded the provision of well abandonment integrated services, which covers five oil wells in Sarawak that will operate until the end of 2020, by Sarawak Shell Bhd.
“Both of these contracts reinforced Uzma as a leading well P&A player in Malaysia and Uzma’s readiness to service demands overseas,” Kamarul said.
“We believe that the demand for well P&A will grow not only in Malaysia but throughout the region, particularly in Asean and this will boost Uzma’s earnings potential,” he added.
Uzma Engineering Sdn Bhd, meanwhile, has been awarded a work order from an umbrella contract for the provision of well testing and tubing conveyed perforations. The work order was awarded by Petronas Carigali Sdn Bhd for the light weight well testing services for a period of up to March 2021.
With these newly won contracts, Uzma brings its order book value to approximately RM1.5 billion of firm contract values.
Uzma’s share price closed down 25.5 sen or 36.2% at 45 sen today amid the energy stocks rout, following the massive plunge in oil price.