Hi guys,
I am very happy to see so many i3 Forumers buying into Velesto today. Velesto in Top no. 3 Volume makes me very happy indeed
Let Calvin share with you my reasons
1) FIRST AND FOREMOST IMPORTANT ANNOUNCEMENT FROM PETRONAS
As RAPID REFINERY NOW ALMOST 97% COMPLETED FOR DOWN STREAM REFINING PETRONAS IS NOW LOOKING TO UPSTREAM ACTIVITIES FOR YEAR 2019
EXPENDITURE FOR OFFSHORE UPSTREAM WILL INCREASE FROM RM11.5 BILLIONS (2018) TO RM15 BILLIONS THIS YEAR (AN INCREASE OF 30%)
2) PETRONAS has indicated that they will Increase Oil Rig from 15 (2018) to Mid 20s or 25 Oil Rigs and Up to End 20s about 29 Oil Rigs for Year 2019. In year 2014 Right when UMW OG Bought New Oil Rigs & New WorkOver Rigs Crude Oil Price crashed.
Of the 39 Oil Rigs in Operation 25 were put out of use due to the low Brent Crude Price fallen to a low of USD27 per barrel
UMW OG went into deep trouble like many others. And finally AMANAH SAHAM BUMI Bought over UMW OG from UMW 55% shareholding and changed its name to VELESTO
3) AMANAH SAHAM BUMI IS VERY VERY FORTUNATE TO TAKE OVER SUCH EXPENSIVE & NEW ASSETS IN THIS TIME OF CRISIS. CRISIS FOR UMW CREATED GREAT OPPORTUNTIY FOR AMANAH SAHAM BUMI
These New Oil Rigs & WorkOver Rigs are VERY VERY EXPENSIVE. Each Cost Hundreds of Millions in USD
4) FINALLY PETRONAS HAS AWARDED HUGE PROJECTS TO VELESTO
Now please go and See JOB Awards of VELESTO from Bursa Website
OTHERS UMBRELLA CONTRACT FOR THE PROVISION OF 340K AND 460K HYDRAULIC WORKOVER UNIT FOR PETRONAS CARIGALI SDN BHD ("CONTRACT") OR ("AWARD OF CONTRACT")
| UMW OIL & GAS CORPORATION BERHAD |
| Type | Announcement |
| Subject | OTHERS |
| Description |
UMBRELLA CONTRACT FOR THE PROVISION OF 340K AND 460K HYDRAULIC WORKOVER UNIT FOR PETRONAS CARIGALI SDN BHD ("CONTRACT") OR ("AWARD OF CONTRACT")
|
|
1. INTRODUCTION
The Board of Directors of UMW Oil & Gas
Corporation Berhad ("UMW-OG") is pleased to announce that UMW Workover
Sdn. Bhd. (“UWO”), a wholly-owned subsidiary of UMW Malaysian Ventures
Sdn. Bhd. (“UMV”), which in turn is a wholly-owned subsidiary of UMW-OG
has been awarded a contract for the provision of hydraulic workover
units (“HWU”) for PETRONAS Carigali Sdn Bhd. (“PETRONAS Carigali”).
All relevant approvals with regards the Award of Contract have been secured today.
2. DETAILS OF CONTRACT
2.1 The Contract is for the provision of
HWU to undertake workover services for PETRONAS Carigali under an
umbrella contract. It calls for the use of all or any of UWO’s five
(5) HWU, namely UMW Gait 1, UMW Gait 2, UMW Gait 3, UMW Gait 5 and UMW Gait 6 to undertake workover services, which are services rendered in performing maintenance and/or remedial treatments on an oil or gas well.
2.2 The Contract is of an umbrella
framework which provides an over-arching contractual relationship which
may comprise a series of individual orders and call-outs.
2.3 Commencing from 22 December 2017, the Contract has a term of three (3) years with an option to extend for a further 1 year (“Extension”).
2.4 Orders for services under the
Contract are individually made through call-outs and at stipulated
prices. At present there has not been any call-out or work orders for
services.
3. INFORMATION ON PARTIES
3.1 Information on UMW Workover Sdn. Bhd.
UWO was incorporated in Malaysia under the
Companies Act, 1965 on 13 March 2014 and is principally involved in the
business of providing workover operations for the oil and gas industry.
3.2 Information on PETRONAS Carigali
PETRONAS Carigali is a wholly-owned subsidiary
of Malaysian state-owned oil and gas company, PETRONAS and has its
office at Level 26, Tower 1, Petronas Twin Towers, Kuala Lumpur City
Centre, 50088, Kuala Lumpur, Malaysia. The principle activities of
PETRONAS Carigali includes the exploration, development and production
of oil and gas.
4. FINANCIAL EFFECTS
The Contract will not have any effect to the
earnings and net assets of UMW-OG Group for the financial period ending
31 December 2017 but is expected to contribute positively to the
earnings and net assets of UMW-OG Group in the financial periods in the
duration of the Contract and also for the Extension, if the option to
extend is exercised.
5. RISK ASSOCIATED WITH THE CONTRACT
The risks associated with the execution of the
Contract comprises operational and execution risks, which will be
mitigated and/or managed by UWO, a company with a proven successful
track record of undertaking workover services.
6. DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST
None of the Directors and/or the substantial
shareholders of UMW-OG and/or persons connected with the Directors
and/or substantial shareholders have any interest, direct or indirect in
the above Contract.
7. STATEMENT BY DIRECTORS
The Board of Directors of UMW-OG is of the
opinion that the Award of the Contract for the abovementioned workover
services is in the best interest of UMW-OG Group.
This announcement is dated 16 January 2018.
|
|
On January PETRONAS Gave Job Awards for 5 OGSE, namely, Carimin, Dayang, Petra Resources (Penergy), Deleum & Sapnrg
After One year we SEE Carimin, Dayang & Penergy Revenues are UP FROM 60% To Over 100%
This shows the HUGE JOB AWARDS DONE FOR PETRONAS.
NOW ON JANUARY 2018 IN BURSA ANNOUNCEMENT PETRONAS ALSO GAVE JOB AWARDS TO VELESTO
Read again
DETAILS OF CONTRACT
2.1 The Contract is for the provision of HWU
to undertake workover services for PETRONAS Carigali under an umbrella
contract. It calls for the use of all or any of UWO’s five (5) HWU, namely UMW Gait 1, UMW Gait 2, UMW Gait 3, UMW Gait 5 and UMW Gait 6 to undertake workover services, which are services rendered in performing maintenance and/or remedial treatments on an oil or gas well.
Now let's take a closer examination of these HWU
What are these HWU
HWU are
WORKOVER SERVICES (Refer to VELESTO COMPANY WEBSITE)
We own and operate a fleet of modular and versatile workover units
that are well suited for well intervention operations located either on a
small satellite jackets or large integrated platforms.
Our hydraulic-driven workover units with high pulling capacities are capable of performing a wide range of workover services.
See more
Hydraulic Workover
Looking for a cost efficient method to repair your well?
Hydraulic Workover is the most cost efficient method to repair
all types of wells both onshore and offshore. The Hydraulic Workover
Unit (HWU) is a versatile, cost saving and safe tool to perform sand
cleanouts, change-out completions and to repair casing leaks. By fixing
wells quickly and very cost efficient, Balance Point Control has become
the market leader for Hydraulic Workover services in the North Sea.
Our Hydraulic Workover Units can do;
• Completions / Workover
• Plug & Abandonments
• ESP completion
• Sand screens installations
• Tubing conveyed perforations
• Liners and tailpipe installation
• Repair of down hole safety valves
• Well deepening
• Fishing/ Well clean-outs
• Casing window milling
• Casing repairs
• Packer / Plug Milling
• Cementing
• And much more….
• Plug & Abandonments
• ESP completion
• Sand screens installations
• Tubing conveyed perforations
• Liners and tailpipe installation
• Repair of down hole safety valves
• Well deepening
• Fishing/ Well clean-outs
• Casing window milling
• Casing repairs
• Packer / Plug Milling
• Cementing
• And much more….
How does it work?
Hydraulic Workover is a well intervention technique
which can be used to install or remove tubular (pipes) in- or out of
dead wells. “Dead” well means that the well has zero surface pressure
and has a heavy fluid or mud in the wellbore, or is not capable of
sustaining natural flow. The pipes are pulled out of the well using
hydraulic cylinders.
Hydraulic Power
The HWO unit (Hydraulic Workover Unit) utilizes
hydraulic cylinders to lift the tubular in- or out of the well. The use
of hydraulic cylinders allows perfect control over tubular movements and
eliminates the use of a large mast construction which is present on
conventional drilling rigs.
Hydraulic cylinders can generate large pull and push
forces and give the HWO unit a small footprint and layout. These
properties are especially beneficial for offshore operations where space
is limited and where weather conditions can be harsh. In general is the
running speed of a HWO unit lower than that of conventional workover
rig.
NOW FROM HERE WE CAN SEE WHY PETRONAS NEEDED HWU (Hydraulic Workover Unit) from VELESTO
Since year 2014 Out of 39 Oil Rigs in Use Only 15 Survived (24 Oil Rigs were left idle until this year 2019)
And this Year Petronas has again recommisioned 10 to 14 moth-balled Oil Rigs
Tell me after 5 long Years in the Offshore sea
these Oil Rigs will need a Whole Lot of Repair & Overhaul before
being able to be put back into use
Why the Contract amount is not specified?
The ANSWER Is This
If you send a BMW Car after being idle for 5 years
for Service & Repair you won't know the exact cost until you test
everything & check what parts needed for repair or replacement
So is Oil Rigs left abandoned in the Sea for 5 years
THERE WILL BE LOTS OF SERVICE, REPAIR & PARTS REPLACEMENT FOR ALL THESE 10 to 14 OIL RIGS
SINCE OIL RIGS ARE THE MOST EXPENSIVE EQUIPMENT TO
MAINTAIN (THEY COST BILLIONS & BILLLIONS OF USD VELESTO STANDS TO
MAKE MANY MANY TONNES OF PROFIT FOR YEAR 2019
Next Question?
Are there any other Competitors apart from VELESTO Having HWU (Hydraulic Workover Unit)?
The Answer is None
ONLY VELESTO HAS HWU
Our Hydraulic Workover Units can do;
• Completions / Workover
• Plug & Abandonments
• ESP completion
• Sand screens installations
• Tubing conveyed perforations
• Liners and tailpipe installation
• Repair of down hole safety valves
• Well deepening
• Fishing/ Well clean-outs
• Casing window milling
• Casing repairs
• Packer / Plug Milling
• Cementing
• And much more….
• Plug & Abandonments
• ESP completion
• Sand screens installations
• Tubing conveyed perforations
• Liners and tailpipe installation
• Repair of down hole safety valves
• Well deepening
• Fishing/ Well clean-outs
• Casing window milling
• Casing repairs
• Packer / Plug Milling
• Cementing
• And much more….
NOW LET's TAKE A LOOK ON UMW OG FROM STOCK PERFORMANCE GUIDE By DYNAQUEST (Refer to pp 254) March 2015 Editon
And I quote
"UMWOG is the sole Malaysian owner and operator of HWUs and a petroleum-licensed provider of HWU services with four HWUs"
(as of Now VELESTO Has added a few more new ones (almost brand new and not much used) 2014 models
No one else has these HWUs that I know of. Not Sapnrg, Armada,
Dayang, Penergy, Carimin, Deleum or other players. NO NO NO. NO ONE ELSE
HAS HWUs EXCEPT VELESTO!!!
VELESTO IS THE SOLE OPERATOR ACCORDING TO DYNAQUEST
They say, "IN THE LAND OF THE BLIND THE ONE EYED MAN IS KING"
SO IN A RUSTY SEA OF ABANDONED OIL RIGS VELESTO IS THE SOLE CHAMPION KING WITH HWUs
BEST REGARDS
Calvin Tan Research
Singapore
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/197595.jsp
