UMW acquires another Premium Jack-Up Drilling Rig
Singapore, 23 May 2013 – UMW Holdings Berhad announced that UMW Rig Asset (L) Ltd., a wholly-owned subsidiary of UMW Oil & Gas Corporation Berhad ("UMW Oil & Gas"), which in turn, is a wholly-owned subsidiary of UMW, signed a Share Purchase Agreement today with S.D. Standard Drilling PLC., to acquire a premium jack-up drilling rig through the acquisition of the entire equity interest in Offshore Driller 4 Ltd ("OD-4"). The total consideration for this investment amounts to USD223.0 million. The acquisition of this new jack-up drilling rig is part of UMW Oil & Gas' plans to further develop its offshore drilling operations. The premium jack-up drilling rig is currently being constructed by a reputable and established rig builder, and is of higher specifications and design than a typical jack-up drilling rig to enable operations in much more challenging environments. The completion and delivery of the premium jack-up drilling rig is expected to be in May 2014.
UMW Oil & Gas currently has a fleet of four offshore drilling rigs and has been carrying out offshore drilling for a number of wells since 2005. NAGA 1, a semi-submersible drilling rig, is co-owned with Japan Drilling Co. Ltd. UMW Oil & Gas also owns and operates three premium jack-up drilling rigs; NAGA 2, NAGA 3 and UMW NAGA 4. NAGA 1, NAGA 3 and UMW NAGA 4 are contracted out to PETRONAS Carigali Sdn. Bhd. for operations in Malaysia, while NAGA 2 will commence its operations in Vietnam for Petrovietnam Drilling and Well Services Corporation by June 2013.
"This acquisition marks another milestone in our offshore drilling business. The new addition to our premium jack-up drilling rig family will enable UMW Oil & Gas to further enhance its assets portfolio for our future expansion plan and extend our services to address the high demand for jack-up drilling rigs in Malaysia and in the Asia Pacific region", said Rohaizad Darus, President, UMW Oil & Gas Corporation Berhad.
UMW Oil & Gas is also developing a drilling academy, the UMW Drilling Academy, to train more Malaysians, not only for UMW Oil & Gas' needs but also for other drilling companies operating in Malaysia. With the introduction of this drilling academy, the nation will have a continuous supply of capable and skilled personnel to meet the needs of the industry.