Petra Energy Bhd has won a technical service contract from Petroliam Nasional Bhd (Petronas) to provide services for the latter’s oil field worth an estimated US$40 mil (RM170.8 mil).
The oil & gas services provider said in a Bursa Malaysia filing today that its wholly-owned subsidiary Petra Energy Development Sdn Bhd (PEDSB) had received and accepted a letter of award on June 4 from Petronas over the continuation of the Banang field production to PEDSB under a technical service agreement.
The two-year contract will come into effect on June 29, 2020 and will end on June 28, 2022.
PEDSB, on behalf of Petronas, will provide services to operate and maintain the Banang field with the main scope of work to be undertaken include: production, storage and offloading facilities, wells and reservoir surveillance, production planning and forecasting, routine operations and maintenance, logistics, and inventory and warehousing.
Petra Energy said the contract is expected to contribute positively to its earnings and net assets per share for the duration of the contract.
“The board and management of Petra Energy appreciates the support that Petronas has given to the group and the confidence that it has placed in Petra Energy,” it said.
“PEDSB is in an ideal position to undertake the operation and maintenance of the Banang field after having an exposure to the upstream field development and production via a 30% joint venture in the Kapal Banang Meranti Small Fields Risk Service Contract.
“The opportunity to operate and maintain Banang Field is a natural progression and an extension of its services within the oil and gas industry. In addition, the Petra Energy group has the right capabilities and assets such as the Mobile Offshore Production Unit to undertake the scope of works under the terms of the contract,” the group said.
Petra Energy’s shares are up 8.57% higher at 76 sen after the midday break on June 16. – June 16, 2020
