IN a major investment move, the Yayasan Pesara Kerajaan Malaysia (YPKM) has acquired a 30% stake at an oil & gas (O&G) start-up company, Mulk Oil & Gas Synergy Sdn Bhd (MOGS) for an undisclosed sum.
“We see much potential in the company’s business model. Plus, the acquisition will also help ensure MOGS is able to deliver returns to its shareholders,” YPKM board of trustee member Datuk Wira Jalilah Baba pointed out.
YPKM is an umbrella body established to organise and assist various registered Government retiree and veteran associations in the country. To-date, there are more than 850,000 Government pensioners in Malaysia.
Jalilah said the revival of idle oil wells project by MOGS is estimated to worth US$3 bil, of which 40% of the amount would be oil tax revenue for the Government.
Touching on the matter MOGS executive president Mohd Zaidan Khalid said while the O&G industry is severely impacted due to the COVID-19 pandemic and low prices, the company decided to enter the Malaysian market to offer expertise in reviving idle oil wells in Malaysian waters.
“We plan to offer an innovative state-of-the-art technology solution on well services. The company aims to collaborate with production sharing contract (PSC) operators under their well reactivation programme for idle wells in Malaysia.
“The potential projects will contribute an internal rate of return (IRR) exceeding 25% for MOGS and create job opportunities for local vendors,” he said.
Zaidan added his company plans to reactivate about 20 idle wells annually as the move would be a preferred cost optimisation exercise amid weaker oil prices, as opposed to drilling for new wells.
State-of-the-art European tech
On that note, he said that MOGS will bring additional footage in local upstream activities by using a compact high mobility semi-submersible rig, the SSR HIDAYA 01, that embeds a proven technology from Europe.
The technology is said to be effective in mitigating various accessibility issues to the wellhead platform related to ageing facilities, small footprint, seabed conditions and water depths.
“SSR HIDAYA 01 is able to work on between 30 metres and 500 metres of water depth for maintenance and sub-sea operations and is adaptable to adverse weather condition.
“It is designed for operation in wave height up to five metres with increase in operations uptime up to 85%.
“According to a feasibility study conducted by us, SSR HIDAYA 01 is expected to contribute to a significant cost savings of 20% to 30% to the well intervention operations, compared to other service rigs currently available in the market,” added Zaidan.
Elsewhere, MOGS has also partnered with one of the major oilfield service providers, Schlumberger, where the latter will be providing its technical and technological support to the former to deliver an end-to-end solution for idle well restoration projects in Malaysia. – Dec 29, 2020.
