KUALA LUMPUR (Nov 17): T7 Global Bhd, via its wholly-owned subsidiary Tanjung Offshore Services Sdn Bhd, has secured two contracts worth a combined value of approximately RM150 million under its energy division for integrated well services and operations and maintenance businesses. 

The energy solution provider said in a statement on Wednesday (Nov 17) that the first contract was from Petronas Carigali Sdn Bhd for the provision of plug and abandonment integrated services for the M3 oilfield, valid from Oct 14, 2021 to Dec 31, 2022.

Meanwhile, the second contract was from PTTEP Sabah Oil Ltd, PTTEP Sarawak Oil Ltd and PTTEP HK Offshore Ltd (PTTEP Group) for the provision of Gastec nitrogen generator maintenance services and spare parts, with the duration of the contract spanning two years from July 2, 2021.

According to T7 Global, the M3 oilfield contract was awarded to Tanjung Offshore Services under the Pan Malaysia umbrella contract for the provision of integrated well services for intervention, work-over and abandonment for Petronas and petroleum arrangement contractors back in Sept 20, 2019. 

Under the Pan Malaysia umbrella contract, Tanjung Offshore Services will participate in integrated well services works for work-over and well abandonment in Malaysia. 

T7 Global chairman Datuk Seri Dr Nik Norzrul Thani N Hassan Thani said the PTTEP award shows the group’s continuous commitment to providing aftersales service and life-cycle solutions for Gastec on-site nitrogen generation systems at their facilities. 

On the integrated well services side, Nik Norzrul Thani said the M3 award is the group’s second project in succession from Petronas Carigali to plug and abandon 10 wells, following the previous work order award for plug and abandonment integrated services for the Pulai-A project dated March 29, 2021. 

He added that the Pulai-A project was successfully completed with five wells plugged and abandoned safely ahead of time. 

“With [the] M3 award, we have cemented our position as an integrated well services player in Malaysia and reaffirmed our technical capabilities to undertake complex offshore projects in the energy value chain.

“Integrated well services, which cover work-over of producing wells and abandonment of old wells, shall form part of T7 Global’s long-term energy solutions,” he said. 

Looking ahead, Nik Norzrul Thani noted the group is optimistic about the local oil and gas industry’s outlook with Petronas maximising its oil production in the short term and expects 500 wells to be permanently plugged by 2030.

“In the coming year, we aim to ride on our previous success to secure the next integrated well services job under the Pan Malaysia umbrella contract premised on our innovative well solutions and good project execution track record,” he said.

T7 Global said the two awards are not expected to have any material effect on its total issued share capital, but they are expected to contribute positively towards its earnings and net assets per share for the financial years ending Dec 31, 2021 (FY21) to FY23.

At 12.30pm on Wednesday, T7 Global settled one sen or 2.67% higher at 38.5 sen, valuing the group at RM237.35 million, with some 3.31 million shares transacted so far in the day.