Under the agreement, Schlumberger will provide MOGS with the technical and technology support, particularly well portfolio optimisation, which will enable the latter to prioritise and accelerate well intervention operations.
MOGS chief operating officer Fizlie Mansor said with a clear framework in place, the company now has a process to accelerate its unique business proposition as it aims to deliver new and innovative solutions for oil and gas (O&G) well services in Malaysia, particularly in marginal fields.
"MOGS is looking forward to work with Schlumberger on this production optimisation initiative for which Schlumberger is uniquely positioned to assist MOGS in planning and executing the IWS programme efficiently,” he told reporters after a virtual MoU signing ceremony between MOGS and Schlumberger today.
Schlumberger has been operating in Malaysia for 85 years and has the technical experience, knowhow and seamless technology that will enable MOGS to comprehensively review production potential of existing fields, production integrity issues, and recommend solutions to rejuvenate idle wells and optimise field production.
The process is also expected to increase the field reserve's recovery factor and extend its lifespan, providing MOGS with a more sustainable approach in well services.
Meanwhile, MOGS is in the final stages of negotiations with a European engineering outfit for a turnkey contract to design and construct its service rig, "SSR HIDAYA-01”, which could potentially provide the industry with a rugged and robust offshore solution.
SSR HIDAYA-01 is an innovative compact semi-submersible service rig designed and built to be more durable against bad weather and increases well intervention and services uptime of up to 85 per cent per year compared to conventional service rigs.
"MOGS is expected to bring in a revenue of over US$342 million (US$1=RM4.06) in the first year alone and is currently in talks with strategic investors in both the domestic and international equity markets to raise the funds,” Fizlie said, but declined to reveal further details on the matter.
He said investors who seek to capitalise on the opportunity can expect an investment rate of return of over 15 per cent in the first year of operations based on the expected contracts to be secured by MOGS.
Meanwhile, MOGS chairman Tan Sri Dr Aseh Che Mat in his welcoming speech at the ceremony said the company offered a unique investment opportunity in these challenging times for the O&G industry whereby the company’s key selling proposition is to generate revenue for the Malaysian government that was not previously sought before.
"SSR HIDAYA-01 will complete MOGS’ cost-efficient IWS solutions as the company aspires to support, sustain, and improve national oil production quota, which will see the government receiving a substantial portion of oil revenue out of this venture,” he added. - Bernama