KUALA LUMPUR (Nov 20): Reservoir Link Energy Bhd (KL:RL) said one of its subsidiaries has been appointed as a panel contractor for integrated well continuity services by national oil-and-gas company Petronas.
The appointment will run for five years until October 9, 2029, Reservoir Link said in a statement. Under the agreement, Reservoir Link will provide services, including slickline, electric wireline, wellhead maintenance, perforation, and workover for production enhancement and abandonment.
The potential value of the services was not disclosed.
Under the terms of appointment, Reservoir Link’s subsidiary Reservoir Link Sdn Bhd will provide said services to the petroleum arrangement contractors through a “mini bidding exercise” during which the specific pricing for the works will be set.
The term ‘petroleum arrangement contractors’ is used by Petronas to refer to oil-and-gas producers from global supermajors such as Shell and ExxonMobil to domestic and foreign independent explorers including Hibiscus Petroleum Bhd (KL:HIBISCS).
The appointment by Petronas is Reservoir Link’s latest win. The company, which specialises in well services within the industry, most recently secured a five-year contract with Hibiscus for leak diagnostic and remedial services.
Shares of Reservoir Link edged up 0.5 sen to 32.5 sen as trading resumed from Wednesday’s midday break following the announcement, giving it a market capitalisation of RM109 million.