Uzma said in a statement that Petronas will reimburse the balance of the reimbursable capital and operational expenditures to Uzma and Enquest over the coming nine months.
Uzma and Enquest had a 30% and 70% equity interest in the partnership respectively.
The contract’s objective was to develop and produce petroleum from the Tanjong Baram field.
According to Uzma, the Tanjong Baram SFRSC was signed six years ago when the oil price was about US$90 per barrel and opportunity was given by Petronas for local service companies to participate in field development and operations.
“Together with our partner, EnQuest, we have managed to operate the facilities safely since 2014.
"Through the implementation of innovative technologies and cost effective operations, we were able to sustain the production of this small field for four years despite the low oil price,” said Uzma managing director and group CEO Datuk Kamarul Redzuan Muhamed.
The group added that the termination of the contract will not have any significant effect on its earnings and net assets for the financial year ending June 30, 2020, and beyond.
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