Kencana Petroleum’s first drilling unit KM-1 is about to set sail for its first drilling assignment with Petronas Carigali.
The tender assist drilling barge has started rigging down and will leave Kencana’s Lumut yard later this week for East Malaysian waters.
The rig is the first Malaysian-flagged drilling unit to be built, named and operated by a Malaysian entity, Kencana’s chief executive Mokhzani Mahathir said.
Kencana bought out Singapore-listed Mermaid Drilling’s 75% stake in the rig when the opportunity arose six months ago, Mokhzani said.
The rig construction is underpinned by a long-term charter with Petronas Carigali.
The fixed five-year term charter comes with options for an extension of up to another five years.
KM-1 will commence its charter in Erb West field and is expected to remain in East Malaysian waters for at least one year.
