Tg Baram Small Field Risk Service Contract (SFRSC) operated by Enquest and UZMA as partnership. The production from this field to West Lutong had been up and down since 2019. The production ceased since Q4 2019 and relinquished in Q1 2020. The production annualised is not that significant, circa 300b/d only. Last production before cessation around <100b/d. There is nothing so innovative, it is just wellhead platform FWS to West Lutong.
I'm neutral on this, normal business, negative cashflow even at USD60/barrel hence the relinquishment.
Good news for RSC termination.... they can claim back on the CAPEX n OPEX deployed..... look at previous RSC termination.... see how much Petronas reimburse them..... Sapura Berantai, Ophir n etc..... RSC is formulated for marginal field and local participation, operator can give up if operating at negative, or oil price below certain threshold.
Another point.... at least this will be consider as revenue for Q2 2020 even if there is reduce O&G activity.
Yes, support is 0.545 and 0.515. Keep collecting more before its fly to TP1 0.68, TP2: 0.79 and TP3: 0.92. Chill and relax. Oil sector will definitely recover slowly. Don't be afraid if got holding power. Lesson learn when i bought carepls, 0.3 then sold 0.54 then bought back 0.64 and sold it 0.88. Now price is 1.4. If i hold it more longer since 0.3 how much profit i will get. Damn.
With the termination of the Tg Baram Small Field Risk Service Contract (RSC) with Petronas as it achieved economic cut-off during the 2Q and 3Q of 2019, Uzma is expected to get c. USD22m reimbursement from Petronas for the capex and opex spent on the field. It is understood that the borrowings in relation to the contract is USD13m which will be settled in 3 quarters with the final in February 2021. With this settlement, Uzma is expected to improve its gearing from 1.0x to 0.8x while interest savings upon its full completion will be around RM2.5m per year.
KUALA LUMPUR (March 2): Uzma Bhd said its subsidiary Uzma Engineering Sdn Bhd has secured a contract for the provision of platform wells plug and abandonment campaign for Sarawak 2020 from Sarawak Shell Bhd and Sabah Shell Petroleum Co Ltd.
Under the RM100 million contract, Uzma will supply integrated plug and abandonment services for related works at two Shell-operated platforms involving five wells.
Works are expected to commence in "April and completed by November this year"
This short term contract is an addition to the company topline for coming 2-3quarters. revenue atleast 120-140mil/ quarter.
Sounds cashflow plus Petronas reimbursement sum RM 100mil in coming quarters.
So long i live in cave.see from far glove clan party everyday.. Next week hope can eat meat la. Everyday eat veggie from ocncash sudah x boleh tahan lo...
“Later on Monday, however, prices reversed course and were down by around 1 percent at 8:00 a.m. EDT during the OPEC+ video news conference at which Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said the extra cuts that the Kingdom and its Gulf allies had promised for June on top of their commitments would not be extended to July.”
Thats explain why the oil price is dropping. Latest news.
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Posted by TopEarn1 > 2020-05-22 20:23 | Report Abuse
Is it a bad or good news? I think is a good news for the reimbursement. Since oil price is not at 90USD.