Malaysia: UMWs NAGA 2 Received Letter Of Award From HESS Limited Of Jakarta

The UMW Group announced today that a Letter of Award has been received from HESS (Indonesia-Pangkah) Limited of Jakarta, Indonesia, for the provision of UMW’s Jack-Up Drilling Rig “NAGA 2” and drilling services at a total contract value of approximately USD183.12 million.

The contract shall consist of 7 firm wells and 13 option wells. The Group is confident that the contract will contribute positively to the earnings and net assets of UMW for the financial year ending 31 December 2010 and beyond.

NAGA 2 is expected to commence work in the first week of September 2010 for the Pangkah WHP-B Development Drilling Programme in the Ujung Pangkah Field which is located in the Pangkah PSC – Offshore, East Java, for an estimated period of 1,355 days, equivalent to 3.7 years. NAGA 2 is a premium independent-leg cantilever jack-up rig that has drilling depth capability of 30,000 feet and has a rated operating water depth of 350 feet, resulting in more efficient drilling compared to older jack-ups, with better safety features.

The contract agreement in respect of the above is expected to be signed before the end of August 2010.

UMW’s premium jack-up rig, NAGA 3, is in the final stages of construction and delivery is expected in the 4th quarter of this year. We are currently working on contracts with regard to the provision of this rig and drilling services.

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Source: umw, August 18, 2010;