Kencana expects rig licence

KENCANA Petroleum Bhd, through its subsidiary Kencana Mermaid Sdn Bhd, expects to be awarded the licence to operate and market drilling rigs in Malaysia by Petroliam Nasional Bhd by January next year.
Kencana Mermaid, which is 60 per cent controlled by Kencana Petroleum, was set up recently to support Mermaid Kencana Rig 1 Pte Ltd, which will own a US$136 million (RM452 million) tender rig.
Kencana Mermaid's main role is to provide drilling services and act as an operator of tender rigs.
In October this year, Kencana Petroleum Venture Sdn Bhd and Mermaid Drilling (Singapore) Pte Ltd agreed to work together to offer drilling services in the offshore oil and gas industry.
Kencana Petroleum owns a 25 per cent stake in Mermaid Kencana, while Mermaid Drilling has 75 per cent interest.
On its procurement, construction and commissioning of a petroleum hub and bunkering facility job at the Asia Petroleum Hub, Kencana Petroleum executive chairman Datuk Mokhzani Mahathir said they were awaiting details from the project owners to start work.
"We have yet to receive final specifications on the Asia Petroleum Hub. What we have right now is a very general scope of the job at hand, so we are awaiting further details," Mokhzani said.
It is understood that some engineering work has already started at the site and that the delay is due to some technical issues.
Kencana Petroleum deputy executive chairman Chong Hin Loon said the project was not behind schedule and was expected to be able to meet its 2009 timeline.
On its plans for the coming year, Mokhzani said the group intends to consolidate its operations by enhancing the current business of newly-acquired Torsco Sdn Bhd and ensuring that businesses under Kencana Petroleum Venture run smoothly before it does anything else.
"We've got our hands full, but we are planning for the future," Mokhzani told reporters after the group's annual general and extraordinary general meetings in Kuala Lumpur yesterday.
He said the group's aim is to maintain always an order book of not less than RM1.4 billion.-www.btimes.com.my