Uzma Berhad has announced that a contractor Group that includes its wholly owned subsidiary, Uzma Energy Venture (Sarawak) Sdn Bhd (“UEVS”) and EQ Petroleum Developments Malaysia Sdn Bhd (“EQ”) has on 27th March 2014 signed a Small Field Risk Service Contract (“SFRSC”) with Petroliam Nasional Berhad (Petronas).
Under the SFRSC, the Contractor Group will be jointly responsible for the development and the production of hydrocarbon from the Tanjong Baram Field, located offshore Lutong, Sarawak. The Contractor Group will be responsible to implement the approved Field Development Plan (“FDP”) with planned development activities of which include the drilling of wells, the installation of platforms, topsides and pipelines, and the tie-in of the new facilities to existing PETRONAS Carigali infrastructure as appropriate.
The total cost of the development phase is estimated to be USD 100 million.
The development phase of the SFRSC is expected to complete and first oil is anticipated to occur in 2015. The SFRSC shall be for a period of nine (9) years.
The participating interests of the Contractor Group are EQ (70%) and UEVS (30%). The SFRSC shall be managed by an unincorporated joint venture (“JV”). The JV will carry out the management of the operations and development of the SFRSC, which includes the funding for the cost of development and production of the Tanjong Baram field. EnQuest will be the Operator of the Tanjong Baram project.
“This SFRSC marks a new milestone and a new beginning in the Uzma’s service offerings in the upstream segment. It furthers augments Uzma’s three core capabilities, namely Geoscience & Petroleum Engineering, Drilling and Well services and Projects Oilfield and Operations services,” UZMA said in a statement.
The scope of work of the SFRSC involves the Contractor Group to carry out the development and production of petroleum from the Tanjong Baram Fields.
The Project will start immediately upon execution of the SFRSC and will have a term of 9 years.
Uzma will fund its portion of its working capital of the SFRSC from its internally generated funds, bank borrowings and/or proceeds from equity/debt fund raising exercise. The breakdown of the funding is pending finalization.