Petronas hands out three-year deal to Uzma Engineering
- Business & Finance
Malaysian upstream services company Uzma Engineering has received an umbrella contract for the provision of electric wireline logging (EWL) from Petronas Carigali.
Uzma Berhad, a parent company of Uzma Engineering, said in a Bursa Malaysia filing on Monday that the contract has already begun its three-year duration. Namely, the contract began on December 1, 2016, and will last until December 30, 2019.
The contract can extend to a total of five years since it also includes two one-year extension options for cased hole logging services across the Pan Malaysia area.
Dato’ Kamarul Redzuan Bin Muhamed, the CEO of Uzma, said: “This contract has further proven Petronas’ commitment to the development of local oil & gas players such as Uzma into more competitive areas by providing business opportunities despite the economic downturn.
“This will enable Uzma’s wireline division to pursue potential collaboration with other international companies, which will further strengthen its presence in Malaysia, particularly for EWL services.”
The deal will not have a material effect on the earnings and net assets of the Uzma Group for the financial year ending December 31, 2017, until the specific work order is issued.
The company said that after a specific work order is issued, Uzma expects the contract to contribute positively to its future earnings.