Uzma inks contract with Petronas

  • Business
  • Tuesday, 01 Apr 2014

PETALING JAYA: Uzma Bhd confirmed it has entered into a contract with Petroliam Nasional Bhd (Petronas) to carry out the development and production of petroleum from the Tanjung Baram field.

In a note to Bursa Malaysia, the oil & gas company said its wholly-owned subsidiary company, Uzma Energy Venture (Sarawak) Sdn Bhd, and its partner had entered into the contract, clarifying recent news reports that both were the front runners for the risk service contract (RSC) for the Tanjung Baram field in Sarawak, worth an estimated US$100mil to US$200mil (RM330mil to RM660mil).

Uzma did not reveal any further details, stating that more would be announced once a written consent to release the said announcement had been obtained from Petronas. The group is understood to have teamed up with a British oilfield services firm in its contract bidding.

Earlier this month, analysts had suspected the group’s recent fund-raising exercise was for the RSC award from Petronas.

Kenanga Research analyst Cezzane See believed Uzma’s chances of winning the RSC was strong because the company was a participant in the early studies for some of the marginal fields, which gave it indepth knowledge.

Meanwhile, Petronas Gas Bhd has entered into new gas processing and transmission agreements with parent company Petronas, that will extend its existing contracts by another 20 years to Dec 31, 2033.

The existing Gas Processing Agreement (GPA) and Gas Tranmission Agreement (GTA) that started in April 1, 1994 expired yesterday.

Petronas Gas said the new GPA and GTA did not materially differ much from the terms of the existing contracts.

The company expects the extended contracts to continue “delivering sustainable and steady returns’’ for the group.

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