UMW to expand fleet

UMW Oil & Gas (UMW O&G) will acquire oil and gas vessel operators Icon Offshore and Orkim, the company announced at a briefing on Friday.

The acquisition consists of UMW O&G purchasing a 42.3% from Ekuiti Nasional and plans to purchase the remaining shares. The deal values Icon Offshore at USD 132 million (MYR 588.6 million). The purchase is expected to be finalised in June 2017.

Additionally, UMW O&G announced that it planned to take a 95.5% stake in Orkim, an operator of hydrocarbons transport vessels, for USD 106 million (MYR 473 million).

In Malaysia, Icon Offshore is currently the largest owner and operator of offshore support vessels, while Orkim operates the largest clean petroleum product marine transportation vessels. The dual takeover will see UMW O&G’s fleet grow to seven jack-up rigs, one semi-submersible rig, five hydraulic workover units, 37 offshore support vessels, 14 controllable pitch propeller vessels and two liquefied petroleum gas marine transport vessels.

In 2015, UMW O&G posted MYR 368 million in net loss.