KUALA LUMPUR (Sept 22): PJBumi Bhd (KL:PJBUMI) has secured an integrated project management (IPM) service contract worth US$6.55 million (RM27.6 million) for exploration and exploitation activities in Mogoi Wasian, Papua, Indonesia.

In a filing with Bursa Malaysia on Monday, the engineering and construction services group said its 90%-owned Indonesian sub-subsidiary, PT Indodrill Bumi Perkasa (IBP), signed the service agreement with PT Petro Papua Mogoi Wasian (PPMW) last Friday.

PPMW is an oil and gas operator formed under a joint operation agreement between PT Pertamina EP and PT Petro Papua Mogoi Wasian, which holds the concession for exploration and exploitation in Mogoi Wasian.

Under the contract, IBP will provide IPM drilling services for the drilling of three new wells and the workover of eight existing wells. The scope also includes procurement of materials in line with the approved work plan, specifications, and PPMW’s procurement requirements.

The contract runs for 18 months, from Sept 19, 2025 to March 18, 2027, with work to begin only upon issuance of a work order by PPMW, PJBumi said. The contract value is fixed and not subject to adjustment.

PJBumi said the agreement will strengthen IBP’s position in Indonesia’s upstream oil and gas services sector, while contributing positively to the group’s earnings and net assets per share for the financial year ending June 30, 2026.

Shares in PJBumi rose 11 sen or 5.2% to close at RM2.22 on Monday, valuing the group at RM182 million.