1. Introduction

The Board of Directors of Uzma (“Uzma” or “the Company”) is pleased to announce that Setegap Ventures Petroleum Sdn. Bhd.  (“SVP”), a subsidiary of the Company has received a Contract Extension and Amendment (“Extension”) from PETRONAS Carigali Sdn. Bhd. (“PCSB”) for the Provision of Coiled Tubing and Services (“Contract”) for a period of two (2) years through PCSB’s letter of contract extension dated 24 November 2020 (“Letter”) which was subsequently approved for announcement by PCSB on the 15 December 2020.

The Contract was previously awarded on 20 November 2015.

2. Salient Terms

The salient terms of the Contract are as follows: -

(a) SVP’s scope of works would cover Coiled Tubing Services that includes water/gas shut off, paraffin/scale/sand cleanout, well cleanout, acid stimulation, well unloading, jetting nitrogen and well killing and other non-routine job, e.g. perforation, logging, cement packer, fishing, milling/under-reaming, well abandonment, sand consolidation, gravel pack, through tubing bridge plug setting and coiled tubing patch (“Scope of Works”).

(b) The duration of the extension of the Contract is for a period of two (2) years commencing from 1 December 2020 until 30 November 2022.

(c) The value of the Contract is approximately Ringgit Malaysia Two Hundred Million Only (RM200,000,000) over the Contract period.

3. Risk factors

Potential risk factors include project operational and execution risks, work schedules, delivery timelines and adverse weather conditions.
 

4. Financial effects

The Contract is expected to contribute positively towards the earnings and net assets per share of the Company for the financial year ending 30 June 2021 and onwards until the expiry of the Contract.

5. Directors’ and Major Shareholders’ Interests

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of Uzma has any direct or indirect interest in the Contract.

6. Directors’ Statement

The Board of Directors of the Company, after considering all the relevant factors, is of the opinion that the acceptance of the Letter of Award is in the best interest of the Company.

This announcement is dated 15 December 2020.