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PETALING JAYA: Uzma Bhd’s wholly owned subsidiary, Uzma Engineering Sdn Bhd, has won two contracts worth RM450 million from Petronas Carigali Sdn Bhd for the provision of hydraulic workover and plug & abandonment.
The scope of work comprises the supply of minimum one 340K rating Hydraulic Workover Unit (HWU) rig, and minimum one 460K rating HWU rig, for Petronas Carigali’s workover and well plug & abandonment operations at offshore Malaysia.
“Additionally for each HWU rig, the supporting accommodation work barge and portable crane are also part of the scope of works,“ said the company in a bourse filing.
The duration of the contract will be for three years with extension option of one year, effective May 17, 2023 until May 16, 2026.
In terms of risk factors, it said that potential risk factors include project operational and execution risks, work schedules, delivery timelines and adverse weather conditions.
On financial effects, the contract will not have any effect on the company’s share capital and shareholding structure as it does not involve the issuance of ordinary shares.
“However, it is expected to contribute positively towards the earnings and net assets per share of the company for the financial year ending June 30, 2023 and onwards until the expiry of the contract,“ it said.
Its board is of the opinion that the acceptance of the contract is in the company’s best interest.