The cost of an offshore oil rig can be more than one billion Ringgit depending on its location. All oil rigs require constant maintenance.

The reason why Petra Energy share price is going up higher and higher is because of its good track record in oil rig maintenance contracts awarded by Petroleum Sarawak Bhd, Petronas Carigali Sdn Bhd and Petronas Bhd.

Bursa Malaysia requires all listed companies to make public announcements which affects shareholders’ investment.

Company profile

Petra Energy Bhd is an investment holding company which provides a range of integrated brownfield services for the upstream oil and gas industry in Malaysia. It operates through Services, Marine Assets, and Production and Development and Production segments. The company offers services in construction commissioning and maintenance, engineering, operations and maintenance, oil field optimization, retrofits, domestic vessels re-charter, geophysical, design, and fabrication of process equipment; and packaging and supply of engineered equipment, as well as project management, procurement, and logistic services.

Petra Energy announcement dated 18 June 2021

Sarawak’s State-owned Oil & Gas Company, Petroleum Sarawak Bhd gave a long term contract of 29 years. Phase 1 of the Contract is for an initial four (4) years with an option to extend for another year. Upon successful outcome of Phase 1, the subsequent Phase 2 will involve the development and production activities.

Petra Energy is not concerned with the price of petroleum. Even when the petroleum price is low, Sarawak State Oil & Gas Company will continue operation which requires the service provided by Petra Energy.

Petra Energy is sure to make profit because it provides service based on cost plus which carries no risk of losing money.

This Petra Energy announcement dated 9 Dec 2022

Petra Energy has been awarded a contract amendment and extension for the Provision of Offshore Maintenance, Construction and Modification (MCM) Services from PETRONAS Carigali Sdn Bhd.

The value of the Contract is based on work orders issued by PCSB throughout the extended contract duration effective from 20 September 2022 until 31 December 2023.

Petra Energy is sure to make profit because the work orders are based on cost plus.

The Petra Energy announcement dated 3 January 2023

Petra Energy had entered into a Supplementary Agreement with Petroliam Nasional Berhad (“PETRONAS”) relating to the Production, Operation and Maintenance of the Banang Field Technical Service Agreement (“Contract”) with effect from 29 September 2022 for a period of twenty-two (22) months until 6 August 2024.

The duration of the Contract is for the period of twenty-two (22) months from 29 September 2022 to 6 August 2024.

The Contract is expected to contribute positively to the earnings and net assets per share of PEB Group for the duration of the Contract.