Destini Berhad (Destini or the Group) was awarded a contract for the provision of tubular handling, conductor installation and slot recovery equipment and services for the Pan Malaysia Petroleum Arrangement Contractors (PAC) Operators’ Drilling Program by Petronas Carigali Sdn Bhd (PCSB).
The award which was received by Destini Oil Services Sdn Bhd (DOS), a wholly-owned subsidiary of Destini, will see DOS as the primary contractor for (i) tubular handling, conductor installation and slot recovery for shallow water in East Malaysia and (ii) tubular handling for deep water.
In addition, DOS was appointed as secondary contractor for tubular handling, conductor installation and slot recovery for shallow water in West Malaysia.
The contract is for a tenure of three years and has an extension option of another two years. The total value of the contract will depend on the work orders to be issued by PCSB throughout the duration of the contract.
According to Petroliam Nasional Berhad (PETRONAS) report titled “Activity Outlook 2019-2021” released in December 2018, the national oil corporation intends to maximise ultimate oil recovery of existing brownfields and greenfields to achieve an average production of 1.7 million barrels of oil equivalent per day over the next five years.
The management of Destini shared that this contract award to DOS signifies an increasingly positive outlook for the oil and gas industry in which Destini expects an intensification of drilling activities by oil and gas producers worldwide.
Destini is currently active in participating in tenders for local and international commercial contracts. This contract is testament to Destini’s commitment towards increasing its commercial order book.