Perisai Expects Offshore Drilling Business To Take Up 40 Per Cent Revenue This Year

SINGAPORE, July 17 (Bernama) -- Perisai Petroleum Teknologi Bhd expects its offshore drilling business to contribute as much as 40 per cent to total revenue by year-end, thanks to the delivery of its first jack-up drilling rig.

By 2016, when all three of its new rigs are operational, the oil and gas service provider foresees the new sector's contribution to rise to 60 per cent.

The company is switching weight from its mobile operating production unit, which took up 70 per cent of total revenue last year, to the lucrative but yet untapped drilling segment.

"The Malaysian market has a demand for about 15 jack-up rigs a year, and only two are locally owned.

"The pie is big for more Malaysian players to gradually establish their know-how, and own more rigs in the industry," Managing Director Izzet Ishak said.

He told reporters this on Wednesday after the launch of Perisai Petroleum Teknologi's maiden drilling rig, the Perisai Pacific 101, at a shipyard here.

Perisai has won a US$158 million three-year contract from Petronas Carigari Sdn Bhd for the Perisai Pacific 101.

The contract will commence in August.

The 101 is part of Perisai's nearly RM2 billion, three-year capital expenditure, that it has committed to developing the new offshore drilling segment.

The three drilling rigs cost nearly RM700 million each.

In addition to the 101, the second and third rigs, the Perisai Pacific 102 and Perisai Pacific 103, are scheduled for delivery by the second quarter of 2015 and the third quarter 2016, respectively.

The 101 is designed and equipped to drill high-pressure and high-temperature wells as deep as 30,000 feet, in water depths of up to 400 feet.

It has full service accommodation for 150 personnel and a hook load capacity of 1.5 million pounds.

Perisai hopes to secure a client for its second rig, by the first quarter of 2015, Izzet said.


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