UMW NAGA 5 jack-up drilling rig officially delivered by Keppel FELS

KUALA LUMPUR, MALAYSIA, 29 APRIL 2014 – UMW OIL & GAS CORPORATION BERHAD (“UMW-OG” or the “Company”) today officially took delivery of the latest addition to their fleet, the UMW NAGA 5 jack-up drilling rig, from leading rig designer and builder Keppel FELS. The Delivery Ceremony took place at Keppel FELS’ office in Singapore and was officiated by Puan Sri Habibah Salleh, the wife of the chairman of UMW-OG, Tan Sri Asmat Kamaludin.

UMW-OG President, Rohaizad Darus commented, “With the addition of UMW NAGA 5 to our fleet, UMW-OG is now even better equipped to support and serve the needs of companies not only in the Malaysian oil & gas sector, but across Asia-Pacific as well. Today’s delivery demonstrates that we are on track for fulfilling our business expansion promises made at listing not only in terms of asset-building, but also geographically as UMW NAGA 5 will be going to the Philippines allowing us to continue to make inroads into the market there. This is a major step on our ongoing mission to develop our technological expertise and to strive to become one of the leading players in the regional oil & gas industry.”

UMW NAGA 5 is a premium jack-up drilling rig and is capable of operating in water depths of up to four hundred (400) feet (approximately 125 metres) and drilling to a total depth of thirty thousand (30,000) feet (approximately 9,144 metres) sub-sea. It is scheduled to start work in June 2014, under contract with Nido Petroleum Philippines Pty Ltd (“NIDO”) to drill the Baragatan prospect on behalf of the SC 63 Joint Venture.

The addition of UMW NAGA 5 brings the Company’s total number of jack-up drilling rigs to four, and is in line with UMW-OG’s promise to expand their fleet at a rate of one per year. NAGA 1 is a semi-submersible drilling rig co-owned by the Japan Drilling Co. Ltd, and along with another jack-up drilling rig UMW NAGA 4, is currently under contract with Petronas Carigali Sdn. Bhd. operating in offshore Malaysia. UMW NAGA 4 also serves as a base for trainees from the UMW-INSTEP Drilling Academy to gain experience and have hands-on exposure to a premium modern jack-up drilling rig. UMW-OG also maintains UMW NAGA 2 and UMW NAGA 3, which are currently in operations in Vietnam. A further two more premium jack-up drilling rigs, UMW NAGA 6 and UMW NAGA 7 are expected to be delivered in September 2014.

Rohaizad added, “I would be remiss if I did not express my gratitude and appreciation to Keppel FELS for their commitment and tireless efforts in working with us at all stages of the acquisition, from the initial design process right through to the construction and final delivery of the rig. The high standard of technological excellence and quality that they bring to each of their constructions is apparent in UMW NAGA 5. We are extremely thankful for the hard work and contributions of all their employees and sub-contractors in ensuring that this project was a success. I would also like to take this opportunity to thank NIDO for their trust in us. We are looking forward to a long and fruitful partnership together.”

Keppel FELS is a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), a wholly-owned company of Keppel Corporation Limited. Keppel FELS is a leading designer, builder and repairer of high-performance mobile offshore rigs. Its portfolio of proprietary designs and floating production solutions meets a broad spectrum of operating requirements, including deep waters and harsh environments. UMW-OG previously worked with Keppel FELS on UMW NAGA 4 and are currently working together with them on a new jack-up rig to be called UMW NAGA 8 which is expected to be delivered in September 2015.