KUALA LUMPUR (Sept 25): Reservoir Link Energy Bhd (KL:RL) has secured a letter of award from Hibiscus Oil & Gas Malaysia Ltd (HML), a subsidiary of Hibiscus Petroleum Bhd (KL:HIBISCS), for the provision of well leak diagnostic and remedial services.

In a bourse filing on Wednesday, the energy-related services provider said its wholly-owned subsidiary Reservoir Link Sdn Bhd (RLSB) was awarded a five-year contract effective Sept 19, 2024 to Sept 18, 2027, with a one-year extension option at HML’s discretion.

Reservoir Link said that the contract is on a call-off basis and the total value will be based on works completed by RLSB and in accordance with prices and rates in the contract.

The scope of work will include supplying competent personnel, all consumables including sealant and other associated chemicals as well as operating associated equipment to perform the sealant treatment activities, and executing well integrity remediation activities related to pressure and time activated sealant services for HML.

“The contract is expected to contribute positively towards the earnings of the company and its subsidiaries for the financial year ending June 30, 2025 (FY2025) and throughout the contract period,” it said.

Including the latest win, Reservoir Link has announced three contract awards year-to-date.

In April, Reservoir Link’s 51%-owned subsidiary Founder Energy Sdn Bhd (FESB) bagged a RM22 million subcontract job from JS Solar Sdn Bhd (JSSB) for a 50-megawatt alternating current solar farm in Kulim, Kedah.

Meanwhile, RLSB in March secured a five-year contract from Petronas Carigali Sdn Bhd for the provision of well leak repair equipment and services, with the value based on the number of works executed.

Shares of Reservoir Link closed unchanged at 29 sen on Wednesday, valuing the group at RM97.11 million.