RESERVOIR Link Energy Bhd has won a contract from Petronas Carigali Sdn Bhd for the provision of annulus wash and cement assurance (AWCA) equipment and services for M1 and Anding fields.

In a statement today, the company said its wholly-owned subsidiary Reservoir Link Sdn Bhd commenced the work on the effective date of the award which was July 11, and expected to complete it within 18 months.

Under the contract, Reservoir Link will provide annulus wash and cement assurance services that includes creating a circulation tunnel or window across casing in the well and washing or removing defective cement in the annulus behind the casing.

The service also includes placing good cement across the annulus and in the casing at depth of interest.

The total estimated value of the contract will be based on the number of wells executed.

“Given the overall improving industrial sentiment towards the oil and gas sector, Reservoir Link is expected to benefit from it. The sector is gradually experiencing more activities.

“This phenomenon is further supported by the rising demand for petrochemical products, as well as the aviation sector, which has experienced pent-up demand following the uplifting of Covid-19 restrictions,” said Reservoir Link executive director Thien Chiet Chai.

He added the group has also set its sights on building up the renewable energy sector to ensure long-term business sustainability, provided that the government and various other organisations are actively encouraging the use of renewable energy in their battle against global warming.

“Hence, our two-pronged approach towards the energy sector focusing on both oil and gas as well as other renewable energy alternatives will eventually prove to be substantial in outlining the future direction of our group,” he added.

The group’s shares closed unchanged at 34 sen today, valuing the group at RM99 million. – TMR