Malaysia-listed drilling and oilfield services provider UMW Oil & Gas Corporation (UMW O&G) has extended its joint venture (JV) agreement with Japan Drilling Corporation (JDC) for another five years to co-own a rig.
UMW O&G stated in its filing to the Malaysian stock exchange Bursa Malaysia that the JV with Japan-based drilling contractor was to confirm the mutual agreement of both parties to renew the terms of the agreement for a further period of five years, after the first 10 years has elapsed.
All other terms of the JV remain unchanged. In the meantime, UMW O&G has also signed the addendum to the rig-owning agreement dated 11 March 2005 with JDC, JDC Panama, and UMW Drilling, for renewal of the terms of the agreement signed between these parties.
Previously, UMW Holdings, the parent company of UMW O&G, had entered a JV with JDC and UMW Petrodril (Malaysia) in respect of the JV operations of Japan Drilling Malaysia (JDM) in 2005.
UMW Holdings took a 45% stake in the JV and appended it with the rig co-owning agreement with JDC, JDC Panama, and UMW Drilling to set out the terms and conditions for the co-owning of the rig, pursuant to the memorandum of agreement for the JV entered by the parties.