Dear  Friends, Investors & Traders

Today 2nd Tier O&G Velesto won a USD RM131 Milions or RM541 millions JACK up RIG service shows that 2ND tier OGSE SUPPORT stocks are finally coming into play

iT  STARTED WITH TIER ONE OGSE STOCKS LIKE DAYANG, PENERGY, CARIMIN, DELEUM & UZMA

ACTUALLY PETRONAS HAS ALREADY ROPED IN SUPPORTING BANKS TO GIVE LOANS TO TIER 2 O&G ENTITIES LIKE T7 GLOBAl, DESTINI, SCOMIES, AZRB & VELESTO

SO JOB AWARDS ARE NOW ROLLING OUT FOR T7 GLOBAL, DESTINI & TODAY VELESTO

AFTER GIVING JOBS TO TIER ONE OGSE PETRONAS WAS CONCERNED FOR OGSE SUBCONTACTORS SO THEY ROPED IN BANKS TO GIVE FINANCIAL SUPPORT

See

Petronas teams up with more banks for financing solutions for OGSE vendors

February 23, 2019 00:06 am

KUALA LUMPUR (Feb 22): Petronas is collaborating with another five financial institutions to provide financial solutions to Oil & Gas Services and Equipment (OGSE) vendors, via the Vendor Financing Programme for subcontractors, mid-tier and large companies in the sector.

Petronas presented Memoranda of Understanding (MoUs) on the programme to five banks — Export-Import Bank of Malaysia Berhad, HSBC Bank Malaysia Berhad, Maybank, RHB Islamic Bank Berhad and United Overseas Bank (Malaysia) Bhd.

The Vendor Financing Programme aims to improve access to financing and liquidity to local OGSE vendors, particularly subcontractors, where successful applicants will benefit from competitive rates and efficient financing processes from participating financial institutions.

Petronas has roped in more than 20 major local Maintenance and Engineering, Procurement, Construction & Commissioning (EPCC) contractors and their subcontractors for collaboration in validating their financing applications.

The MOU ceremony was graced by Minister of Entrepreneur Development Datuk Seri Mohd Redzuan Md Yusof and attended by key personnel from the participating banks and members of Petronas’ management.

A small and medium enterprise (SME) Vendor Financing Programme for the OGSE vendors, a collaboration with Bank Islam Malaysia Berhad and Syarikat Jaminan Pembiayaan Perniagaan (SJPP), launched in May 2018, has to-date, recorded approved financing amount of more than RM140 million to SMEs that have direct contracts with Petronas.

Petronas President and Group Chief Executive Officer Tan Sri Wan Zulkiflee Wan Ariffin said the participation of more financial institutions is a testimony to the success of the programme.

“Driven by our responsibility to nurture and shape the Malaysian oil and gas sector, Petronas constantly seeks innovative solutions for the mutual benefit of all parties in the ecosystem — more so in the increasing volatile business environment that we operate in today.

Today’s MoU ceremony signifies the commitment shown by the participating financial institutions towards this effort which plays a crucial role in supporting Petronas’ efforts towards shaping a vibrant oil and gas ecosystem,” Tan Sri Wan Zulkiflee said.

The participation of the main contractors in this programme also provides the additional support needed by subcontractors to secure financial assistance in carrying out their functions. It also largely signifies the shared commitment towards strengthening the industry as a whole,” he highlighted.

The new Vendor Financing Programme will also benefit the Bumiputera OGSE sector including those under the Lestari programme — a recently launched vendor-based development programme by the Ministry of Entrepreneur Development and PETRONAS. For further enquiries on the programme, please contact pdtcorporateprojects@petronas.com.

AND THESE ARE THE CURRENT 3 WHICH HAVE WON PROJECTS FROM PETRONAS RECENTLY

1) VELESTO WINNING RM541 MILLIONS FOR JACK UP RIG RENTAL FOR 3 YEARS

VELESTO DOES NOT NEED MUCH FINANCING AS IT HAS INHERITED THE FAIRLY NEW JACK UP RIGS & HYDRAULIC WORKOVER (HWU) FROM UMWOG

So Velesto stands to reap huge windfall from this job award.

And with this Windfall Job award Calvin has raised its target to 50 sen for Velesto

2) T7 GLOBAL

IT WON THIS RECENT PROJECT

OTHERS T7 Global Berhad ("the Company" or "T7 Global") - Letter of Award for the provision of integrated well services for intervention, workover and abandonment for petroleum arrangement contractors from PETRONAS Carigali Sdn Bhd.

T7 Global Berhad ("the Company" or "T7 Global") - Letter of Award for the provision of integrated well services for intervention, workover and abandonment for petroleum arrangement contractors from PETRONAS Carigali Sdn Bhd.

2. VALUE AND DURATION OF THE CONTRACT The duration of the Contract is for a period of five (5) years, commencing from 20 September 2019 to 19 September 2024. The Contract value shall be as per work order request, which is at the full discretion of the PACs.

 Petronas has discovered a total of 163 oil fields and 216 gas fields.

THERE ARE A COMBINED TOTAL OF 379 OIL AND GAS FIELDS IN WEST MALAYSIA, SABAH AND SARAWAK

SO BEING A VENDOR FOR OGSE SINCE TANJUNG OFFSHORE DAYS T7 GLOBAL HAS BEEN AWARDED THIS 5 YEAR WELL INTERVENTION, WORKOVER & DECOMMISSIONING UMBRELLA JOB

UZMA WAS GIVEN 22 DECOMMISIONING JOBS BUT T7 GLOBAL IS GETTING A HIGHER PAYING JOB IN WORKOVER

WHAT IS THE DIFFERENCE BETWEEN WORKOVER AND DECOMMISSIONING JOBS?

THE ANSWER IS THIS

A) IN DECOMMISIONNING THE OIL WELL OR OIL PLATFORM HAS TOTALLY RUN OUT OF ITS USEFUL LIFE. SO THEY MIGHT BE DISMANTLED AND OIL WELL PLUGGED

B) IN WORKOVER THERE IS STILL OIL INSIDE THE WELL. SO THEY INTERVENE TO DO OVERHAUL AND REPAIR THE WELL AND GET OIL FLOWING AGAIN.

AS SUCH THIS JOB IS MORE PROFITABLE THAN JUST DECOMMISSIONING & ABANDONMENT OF OIL WELL

SINCE IT IS A 5 YEAR PERIOD COVERING HUNDREDS OF OIL & GAS WELL THE PROFITS MIGHT MATCH CARIMIN AND PENERGY

SO T7 GLOBAL AT 48.5 SEN IS STILL VERY UNDERVALUE

Calvin has a one year Target Price for T7 Gloobal at Rm1.00 (See if it will overtake Uzma)

T7 Global has been a profitable company thru the bleak years like Uzma

3) DESTINI

DESTINI HAS ALSO WON A SIMILAR PROJECT LIKE T7 GLOBAL

WHEN PETRONAS RECRUITED TIER ONE OGSE THEY CHOSE 5 TO DO SIMILAR JOBS IN TOP-SIDE MAINTAINENCE

SO IT IS NO SURPRISE THAT PETRONAS ALSO CHOSE THESE TWO TO DO OIL WELL WORKOVER AS WELL AS VELESTO

See

OTHERS DESTINI BERHAD ("DESTINI" OR "COMPANY") LETTER OF AWARD FROM PETRONAS CARIGALI SDN BHD FOR THE PAN MALAYSIA UMBRELLA CONTRACT FOR THE PROVISION OF INTEGRATED WELL SERVICES FOR INTERVENTION, WORKOVER & ABANDONMENT FOR PETROLEUM ARRANGEMENT CONTRACTORS.

DESTINI BERHAD ("DESTINI" OR "COMPANY")
LETTER OF AWARD FROM PETRONAS CARIGALI SDN BHD FOR THE PAN MALAYSIA UMBRELLA CONTRACT FOR THE PROVISION OF INTEGRATED WELL SERVICES FOR INTERVENTION, WORKOVER & ABANDONMENT FOR PETROLEUM ARRANGEMENT CONTRACTORS.

(i) The contract to be executed between PCSB and DOS pursuant to the Letter of Award shall commence on 20 September 2019 and shall expire on 19 September 2024 (5 years) , unless extended or terminated in accordance with the terms and conditions of the Contract;

NOTE: THE AWARD IS ALMOST IDENTICAL TO THE AWARD GIVEN TO T7 GLOBAL

Now some might ask

Why is the price of T7Global at 48.5 sen while Destini is a low at 21.5 sen?

The Answer is this:

T7 Global balance sheet is better than Destini

But Destini do have asset backing as it has bought lots and lots of Assets

This Single High Value Job offers from Petronas to T7 Global & Destini cause them to seek for funds to buy material & man power for the next 5 Years. While T7 Able To Secure Capital better the Boss of Destini has disposed some of his shares plus giving Rights Issue to raise capital. Calvin thinks both are ok and equally good

Since Velesto has gone up somewhat while T7 Global stagnate & Destini share price even dropped & retraced Calvin likes Destini the most. Followed by T7 Global

Of all the OGSE Stocks Calvin made the most money from Velesto. Velesto has been vele vele good to Calvin

Yes! Calvin has a Target Price for Destini at 50 sen which is same target as Velesto

Ha! Some might question why? Why Velesto & Destini target price the same since Velesto has won a Rm541 Millions job

The answer is this

Velesto income is fixed. The figure agreed with Petronas is Rm541 Millions for 3 Years

For T7 Global & Destini the Job function is not fixed for the next 5 years. They are umbrella jobs which cover many many oil * gas wells. Hundreds of them. So any time they are called out to do maintainence or repair or trouble shoot they make money. And like Dayang & Penergy the profits commensurate with the job done

THIS SINGLE INTERVENTION INTO OIL WELL FOR WORKOVER AND DECOMMISSIONING WILLL NOW CHANGE THE FORTUNES OF BOTH T7 GLOBAL & DESTINI LIKE NEVER BEFORE

FEW PEOPLE ARE AWARE AS OF NOW ITS IMMENSE FUTURE PROFITS

ONLY INSIDERS OF T7 GLOBAL AND DESTINI ARE AWARE

SEE HOW DIRECTORS OF T7 GLOBAL BUY

TAN SRI DATUK SERI TAN KEAN SOON	20-Sep-2019	Acquired	55,000	0.455
TAN SRI DATUK SERI TAN KEAN SOON	19-Sep-2019	Acquired	25,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	18-Sep-2019	Acquired	78,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	17-Sep-2019	Acquired	153,000	0.470
TAN SRI DATUK SERI TAN KEAN SOON	13-Sep-2019	Acquired	79,000	0.455
TAN SRI DATUK SERI TAN KEAN SOON	10-Sep-2019	Acquired	204,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	06-Sep-2019	Acquired	47,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	05-Sep-2019	Acquired	144,000	0.460
DATUK SERI DR. NIK NORZRUL THANI BIN N. HASSAN THANI	29-Aug-2019	Acquired	5,000	0.465
TAN SRI DATUK SERI TAN KEAN SOON	29-Aug-2019	Acquired	119,000	0.464
TAN SRI DATUK SERI TAN KEAN SOON	22-Jul-2019	Acquired	14,000	0.500
ADMIRAL (R) TAN SRI DATO' SERI PANGLIMA AHMAD KAMARULZAMAN BIN HJ AHMAD BADARUDDIN	18-Jul-2019	Acquired	215,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	18-Jul-2019	Acquired	615,000	0.470
TAN SRI DATUK SERI TAN KEAN SOON	17-Jul-2019	Acquired	78,000	0.480
TAN SRI DATUK SERI TAN KEAN SOON	16-Jul-2019	Acquired	376,000	0.490
TAN SRI DATUK SERI TAN KEAN SOON	15-Jul-2019	Acquired	77,000	0.480
TAN SRI DATUK SERI TAN KEAN SOON	12-Jul-2019	Acquired	121,300	0.49

SEE HOW INSIDERS OF DESTINI BUY

DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	04-Oct-2019	Acquired	5,000	0.190
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	02-Oct-2019	Acquired	51,000	0.185
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	27-Sep-2019	Acquired	500,000	0.195
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	25-Sep-2019	Acquired	400,000	0.194
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	24-Sep-2019	Acquired	200,000	0.195
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	23-Sep-2019	Acquired	50,000	0.205
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	20-Sep-2019	Acquired	81,000	0.205
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	18-Sep-2019	Acquired	50,000	0.215
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	11-Sep-2019	Acquired	145,200	0.220
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	11-Sep-2019	Others	96,000,333	-
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	10-Sep-2019	Acquired	90,000	0.216
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	06-Sep-2019	Acquired	150,000	0.215
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	05-Sep-2019	Acquired	50,000	0.215
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	04-Sep-2019	Acquired	200,000	0.213
DATO' ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN	29-Aug-2019	Acquired	100,000	0.220

LAST TIME CARIMIN DIRECTORS ALSO BOUGHT WHEN CHEAP. NOW DIRECTORS OF CARIMIN ARE SELLING

COULD IT BE THAT CARIMIN DIRECTORS AS WELL AS UZMA DIRECTORS ARE NOW SEEING DWINDLING JOB ORDERS FROM PETRONAS AS JOBS ARE NOW BEING DISTRIBUTED TO TIER TWO SUBCONTRACTORS OF OGSE?

BEST REGARDS

Calvin Tan Research

Singapore

Please buy or sell after doing your own due diligence