UMW ... July 09

UMW Holdings Bhd subsidiary’s US$170 million (RM565.51 million) contract to provide a drilling rig to PCPP Operating Company Sdn Bhd (PCPP), off Sarawak has been terminated. It was notified the contract would not be implemented by PCPP, which comprised of Petronas Carigali (Malaysia), Petrovietnam (Vietnam) and Pertamina (Indonesia).

PCPP had in August 2008 awarded the contract to UMW’s 85%-owned UMW Standard Drilling Sdn Bhd to provide the jack-up drilling rig for PCPP’s Block SK 305 exploration and development drilling programmes.

The contract would have been initially for three years, with an option to extend the period for an additional three years. It was expected to have started on Dec 1, last year.

However, under the new scope of works being drawn up under new contracts for drilling activities, UMW is in discussions and negotiations with other PSC operators in Malaysia” to provide the rig services and to be in operation by September this year (2009).