Frontier hires UMW Naga 7 jack-up for drilling offshore Palawan
- Business & Finance
Malaysia’s UMW Oil&Gas has received contract from Frontier Oil Corporation for the provision of a jack-up rig for the company’s drilling campaign offshore the Philippines.
The contract is for a duration of 120 days with an option for an extension of a further 180 days and is planned to start around middle of January, 2015. The contract has a value of approximately US20 million for the firm duration period.
UMW-OG President, Rohaizad Darus, said: “This new contract for our newly built UMW NAGA 7 underlines our continued commitment to geographical expansion. The earlier contract awarded by NIDO Petroleum Limited for UMW NAGA 5 opened the door for us into the Philippines market. We hope UMW NAGA 7 will further solidify our presence in this new emerging and exciting market. Just like our business model in Vietnam, we break into the market and develop it further with more contracts.”
UMW NAGA 7 is scheduled to be delivered by end of December this year. UMW-OG already took delivery of UMW NAGA 5 in April this year which is currently working in Baragatan field in the Philippines. The company is expecting the delivery of another two rigs, UMW NAGA 6 and UMW NAGA 8, in September 2014 and September 2015, respectively. It has also commenced operation of UMW-INSTEP Drilling Academy (“UIDA”) in March this year to train the required operational personnel to support its growth.
Rohaizad added, “We will continue to develop new markets for our rigs as part of our long-term strategy to diversify our revenue streams and to provide wider platform for our global expansion. Besides focussing on traditional oil and gas producing countries in this region like Malaysia, Vietnam, Thailand and Indonesia, we are also developing new markets in countries such as Myanmar and Philippines which are aggressively carrying out exploration and development activities.”
UMW NAGA 7 is a three legged Independent Leg Cantilever jack-up rig designed by GustoMSC and is capable to drill at 375 feet water depth and drilling depth of 30,000 feet.