KUALA LUMPUR: UZMA BHD [] has secured a RM170 million contract from Petronas Carigali Sdn Bhd to provide integrated equipment and services for idle well reactivation project.
It said on Tuesday, July 26 that its subsidiary Uzma Engineering Sdn Bhd (UESB) had received the three year contact which would be effective from July 25, 2011 to July 24, 2014.
Uzma said the contract was expected to contribute positively to its earnings for the financial year ending Dec 31, 2011 and future years.
On project delays, Uzma said the execution of the contract was depending on work orders to be issued by Petronas from time to time.
It said it was the prerogative of Petronas to decide the timing on the requirement of the equipment and services. Hence, any delay in issuing work orders will lead to delay in revenue recognition.
'However, the group has a full time team monitoring the request from Petronas.
'At the current oil price of above US$90 level, the group is of the view that it is economically viable for Petronas to request for UESB's equipment and services,' it said.
Uzma added that the key determinant factor for viability of idle well reactivation was oil price, and that the project could become sub-economic if crude oil dipped below US$25-US30 per barrel.
It said on Tuesday, July 26 that its subsidiary Uzma Engineering Sdn Bhd (UESB) had received the three year contact which would be effective from July 25, 2011 to July 24, 2014.
Uzma said the contract was expected to contribute positively to its earnings for the financial year ending Dec 31, 2011 and future years.
On project delays, Uzma said the execution of the contract was depending on work orders to be issued by Petronas from time to time.
It said it was the prerogative of Petronas to decide the timing on the requirement of the equipment and services. Hence, any delay in issuing work orders will lead to delay in revenue recognition.
'However, the group has a full time team monitoring the request from Petronas.
'At the current oil price of above US$90 level, the group is of the view that it is economically viable for Petronas to request for UESB's equipment and services,' it said.
Uzma added that the key determinant factor for viability of idle well reactivation was oil price, and that the project could become sub-economic if crude oil dipped below US$25-US30 per barrel.
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