KUALA LUMPUR, 6 FEBRUARY 2014 – The good news continues to roll in for UMW Oil & Gas Corporation Berhad ("UMW-OG") as it announced today that its wholly-owned subsidiary, UMW Drilling 8 (L) Ltd ("UD 8") has entered into an agreement with Keppel FELS Limited ("Keppel FELS") for the construction of its newest premium KFELS B Class jack-up drilling rig.

According to the announcement, Keppel FELS will provide design, engineering, procurement of materials and equipment to construct the new rig for a contract value of USD218 million, which will be funded in part by proceeds from the recent Initial Public Offer with the balance to be financed by borrowings.

UMW-OG President Rohaizad Darus commented, "This new rig is part of our long term plan to increase our asset on a more structured basis. We need to execute a long term expansion plan which requires asset acquisition on a scheduled basis to cater for our domestic and global expansion to further fuel the growth of the company."

The new jack-up rig is estimated to be delivered in the third quarter of 2015 and is expected to contribute positively to UMW-OG's earnings and net assets from the financial year ending 31 December 2015 onwards.

Rohaizad added, "We are moving more towards ordering our future rigs directly from the builders instead of buying them from other companies or speculators. As a start, we have chosen Keppel FELS for our first directly built rig based on their good track record on quality and delivery. We are happy with the performance of UMW NAGA 4, our first jack-up drilling rig built by Keppel FELS and we are looking forward to take delivery of UMW NAGA 5 in May this year."

UMW-OG currently has one semi-submersible and three jack-up drilling rigs and four hydraulic workover units under its drilling services business, which are servicing Malaysian and Southeast Asian offshore sectors. UMW-OG also has an oilfield services business which provides threading, inspection and repair services for Oil Country Tubular Goods ("OCTG") in Malaysia and overseas.