KUALA LUMPUR: Yayasan Pesara Kerajaan Malaysia (YPKM) has acquired a 30 per cent stake in start-up Mulk Oil & Gas Synergy Sdn Bhd (MOGS), for an undisclosed amount.
YPKM board of trustee Datuk Wira Jalilah Baba said the foundation saw potential of the company’s business model, which offers expertise in reviving idle oil wells in Malaysian waters.
The stake acquisition would also ensure that MOGS deliver returns to the shareholders, Jalilah added.
YPKM is an umbrella body which coordinates and assists various registered government retiree and veteran associations in the country.
To-date, there are more than 850,000 government pensioners nationwide.
Jalilah said the revival of idle oil wells projects by MOGS was estimated to be around US$3 billion, of which 40 per cent of the amount would be oil tax revenue for the government.
Established in May this year, MOGS plans to offer an innovative state-of-the-art technology solution on well services.
The company aims to collaborate with production sharing contract (PSC) operators under their well reactivation programme for idle wells in Malaysia.
MOGS executive vice president Mohd Zaidan Khalid said the potential projects would contribute an internal rate of return exceeding 25 per cent for MOGS and also stimulate job opportunities for local vendors.
MOGS had targeted an estimated 20 idle wells being reactivated annually as the move would be a preferred cost optimisation exercise amid weaker oil prices environment as opposed to drilling for new wells, he added.
MOGS will bring additional footage in local upstream activities using a compact high mobility semi-submersible rig called SSR HIDAYA 01.
It embeds a proven technology from Europe that is efficiently mitigate various accessibility issues to the wellhead platform related to ageing facilities, small footprint, seabed conditions and water depths.
“SSR HIDAYA 01 is able to work on between 30-metre and 500-metre water depth for maintenance and sub-sea operations and is adaptable to adverse weather condition. It is designed for operation in wave height up to five metre with increase in operations uptime up to 85 per cent,” the company said.
According to a feasibility study by MOGS, SSR HIDAYA 01 is expected to contribute significant cost savings of 20-30 per cent to the well intervention operations as compared to other service rigs currently available in the market.
MOGS has also partnered with one of the major oilfield service providers, Schlumberger.
The latter will provide technical and technology support to MOGs to deliver an end-to-end solution for idle well restoration project in Malaysia.
