Reservoir Link rises on contract win from Petronas Carigali

KUALA LUMPUR: Shares in Reservoir Link Energy Bhd rose in early trade after winning a three-year contract from Petronas Carigali Sdn Bhd.

The upstream oil and gas well related services provider added 5.7%, or 4.5 sen to 83.5 sen with 14.19 million shares traded.

Reservoir Link said it has secured a three-year contract from Petronas Carigali to provide well leak repair equipment and services.

The contract is effective from March 22, 2021 to March 22, 2024.

The scope of the contract includes the provision of engineering consultancy on well leak issue, as well as to provide the well leak rectification services including personnel, product and equipment on a “call-out” basis to the designated worksite.

Reservoir Link will also be required to provide the application of related new technology to perform well leak rectification and downhole sealant.

Separately, Reservoir Link has proposed to buy a 51% stake in a special purpose vehicle (SPV) that will be involved in the solar segment for RM21.17mil, marking its foray into the renewable energy sector.

The company said that the “identified business and assets” of Solar Bina Engineering Sdn Bhd, valued at RM41.5mil, would be injected into the SPV.

Reservoir Link said it had entered into a conditional term sheet with Lee Seng Chi outlining their mutual intention of entering a share sale agreement (SSA) for the company’s proposed acquisition of a 51% stake in the SPV.

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