UMW Holdings Oil & Gas Segment To Start Contributing

KUALA LUMPUR, August 23 (Bernama) -- OSK Research..." /> UMW Holdings Oil & Gas Segment To Start Contributing

KUALA LUMPUR, August 23 (Bernama) -- OSK Research...">
UMW Holdings Oil & Gas Segment To Start Contributing

KUALA LUMPUR, August 23 (Bernama) -- OSK Research has envisaged the oil and gas segment of UMW Holdings to start contributing with the jack-up drilling rig, Naga 2, expected to be deployed in early September.

UMW Holdings Bhd has received a US$183.12 million (US$1=RM3.14) award from Hess (Indonesia-Pangkah) Ltd for the use of the Naga 2 for the Pangkah WHP-B development drilling programme in the Ujung Pangkah field, offshore East Java.

In a filing to Bursa Malaysia on Aug 17, UMW said the contract consists of seven firm wells and 13 option wells and the agreement is expected to be signed before end-August.

"The drilling is expected to commence in the first week of September 2010 and is for an estimated 3.7 years," it said.

The Naga 2 has a drilling depth capability of 30,000 ft.

UMW's associate companies, OSK Research added, are also expected to contribute more in the second half following the start of a few of its oil and gas pipe production plants.

United Seamless Tubular Private Limited's new 300,000-tonne plant in India will start in the third quarter, PT TPCO located in Batam started sometime in the second and Zhongyou BSS will commence production of LSAW/SSAW pipes in the second half of the year.

These oil and gas pipe production plants, OSK Research explained, are expected to altogether reverse the losses from its oil and gas division from a net loss RM32.7 million (in first half 2010) to a net profit of RM14.2 million in the financial year 2010 and subsequently to RM103 million by the financial year 2011.

"We have made vast changes to our margin assumptions on the automotive and equipment division as UMW has benefited from the strong ringgit given its high import content," OSK Research said.

It was reported that UMW Holdings Bhd wants to wait until the second half of the year before making a decision on when to list its oil and gas unit.

-- BERNAMA
<span style="font-size: 14pt"><span style="font-weight: bold">UMW Holdings Oil &amp; Gas Segment To Start Contributing</span></span><br /> <br /> KUALA LUMPUR, August 23 (Bernama) -- OSK Research has envisaged the oil and gas segment of UMW Holdings to start contributing with the jack-up drilling rig, Naga 2, expected to be deployed in early September.<br /> <br /> UMW Holdings Bhd has received a US$183.12 million (US$1=RM3.14) award from Hess (Indonesia-Pangkah) Ltd for the use of the Naga 2 for the Pangkah WHP-B development drilling programme in the Ujung Pangkah field, offshore East Java.<br /> <br /> In a filing to Bursa Malaysia on Aug 17, UMW said the contract consists of seven firm wells and 13 option wells and the agreement is expected to be signed before end-August.<br /> <br /> &quot;The drilling is expected to commence in the first week of September 2010 and is for an estimated 3.7 years,&quot; it said.<br /> <br /> The Naga 2 has a drilling depth capability of 30,000 ft.<br /> <br /> UMW's associate companies, OSK Research added, are also expected to contribute more in the second half following the start of a few of its oil and gas pipe production plants.<br /> <br /> United Seamless Tubular Private Limited's new 300,000-tonne plant in India will start in the third quarter,<span style="font-weight: bold"> PT TPCO located in Batam started sometime in the second</span> and Zhongyou BSS will commence production of LSAW/SSAW pipes in the second half of the year.<br /> <br /> These oil and gas pipe production plants, OSK Research explained, are expected to altogether reverse the losses from its oil and gas division from a net loss RM32.7 million (in first half 2010) to a net profit of RM14.2 million in the financial year 2010 and subsequently to RM103 million by the financial year 2011.<br /> <br /> &quot;We have made vast changes to our margin assumptions on the automotive and equipment division as UMW has benefited from the strong ringgit given its high import content,&quot; OSK Research said.<br /> <br /> It was reported that UMW Holdings Bhd wants to wait until the second half of the year before making a decision on when to list its oil and gas unit.<br /> <br /> -- BERNAMA
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