KUALA LUMPUR (April 14): Sarawak-based Reservoir Link Energy Bhd said today it has been appointed one of the panel umbrella contractors by Petroliam Nasional Bhd (Petronas) for the provision of completion of new technology equipment and services.

In a bourse filing today, the company said its wholly-owned unit Reservoir Link Sdn Bhd (RLSB) received the letter of appointment (LOA) for the services on Dec 11, 2020 while Petronas' approval to announce the panel appointment was obtained on April 13, 2021.

The appointment shall be valid for five years from the date of LOA until Dec 10, 2025.

The work scope for the appointment is to provide the completion of new technology and/or replicate new technology to benefit operation optimisation, reservoir performance, and well integrity assurance.

It added that the appointment is subject to the mini bidding exercise(s) to be performed by the respective Petroleum Arrangement Contractor (PAC). 

"The price for the performance of works shall depend on the mini bidding exercise by the respective PAC," it added.

The company said the appointment is expected to contribute positively to its earnings during the appointment in the event RLSB becomes successful in the mini bidding exercises.

In a separate statement, Reservoir Link's executive director Thien Chiet Chai said the company is thrilled to announce the appointment as a panel contractor by Petronas in this umbrella contract, which will contribute positively to the company's earnings.

"Since the listing of the company during the most unprecedented period right after the Movement Control Order and when oil prices were low, we have successfully secured several contracts within the past six months.

"As we speak, the Brent crude oil price continues to remain stable at US$64 per barrel. We are optimistic about the oil and gas market in the long run. With that said, we will continue to secure more contracts to generate more value for our stakeholders and shareholders alike," Thien added.

Earlier this week, Reservoir Link also announced that it had secured a three-year contract from Petronas Carigali Sdn Bhd for the provision of well leak repair equipment and services.

Shares in the oil and gas well-maintenance company today traded unchanged at 81 sen at the time of writing and has a market capitalisation of RM231 million. There were 2.43 million shares traded.