Uzma bags new gigs in Malaysia and Thailand

Malaysian oil and gas services provider Uzma Berhad has recently secured three contracts with an accumulated value of approximately RM160 million ($38.35M) through its units in Malaysia and Thailand.

Uzma disclosed its recent contract wins in announcements on Monday and 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.

In Monday’s announcement, MP B5 Ltd., Mubadala Petroleum’s subsidiary in Thailand, has awarded a contract for the provision of coil tubing services to MMSVS Group Holding Co. Ltd., a unit under Uzma in Thailand.

The three-year contract includes a two-year extension option. The contract value is approximately RM23 million ($5.5M).

“This is a strategic win for Uzma to grow its core upstream services in the regional market,” said Dato’ Kamarul Redzuan, the Group CEO of Uzma.

Meanwhile, it was announced last week that Uzma Engineering, a unit under Uzma, has been awarded a contract by Sarawak Shell Berhad for the provision of well abandonment integrated services, which covers five wells for the Shell-operated platforms in Sarawak that will run until the end of 2020.

Uzma has also earlier won a contract on well P&A awarded by Petronas Carigali for the Pulai-A field on 22 wells in 2018.

Dato’ Kamarul Redzuan further added: “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.”

Uzma Engineering was also 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 for the light weight well testing services for a period of up to March 2021.

With these new contracts, Uzma brings its orderbook value to approximately RM1.5 billion (firm contract values) and RM2 billion (including estimates of umbrella contract values).