T7 Global unit gets umbrella contract from Petronas Carigali

PETALING JAYA: T7 Global Bhd’s wholly-owned subsidiary Tanjung Offshore Services Sdn Bhd (TOS) has bagged an umbrella contract for the provision of 600K hydraulic workover unit (HWU) to Petronas Carigali Sdn Bhd.
The three-year contract is effective from Feb 6, 2018 to Feb 5, 2021 with an option to extend for an additional year.
In a statement, T7 Global said the umbrella contract is to perform well intervention activities to repair or maintain oil wells.
In addition to the type of HWU units of 150k, 225k and 460k, the group said its unit was awarded for type HWU 600k where it can perform higher pull and push capacity than HWU type 150k, 225k and 460k.
“The contract is an umbrella framework whereby jobs are on call-out basis at the requirement point of time. The Board of T7 Global is of the opinion that the acceptance of the contract is in the best interest of the company," T7 Global executive deputy chairman Tan Sri Datuk Seri Tan Kean Soon said.
 
"While the group has successfully secured several contracts during the period, we are mindful that majority of the contribution will only be realised in 2018 and beyond. Diversification into new revenue streams which provides recurring income is our priority, while efforts to replenish the order book continues," he added.
The group expects the contract to contribute positively towards its earnings and net asset per share for the financial year ending Dec 31, 2018.