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Business Times (Malaysia); Scomi unit gets Shell deal (


Aug 26, 2004

Posted 27 August 04


SCOMI Group Bhd's wholly-owned subsidiary, Kota Minerals & Chemicals Sdn Bhd, has been awarded a contract for the provision of synthetic-based mud and services by Sarawak Shell Bhd/Sabah Shell Petroleum Co Ltd.


The one-year contract, up to August 2005, is for drilling activities for all Shell's deepwater and shallow water wells offshore East Malaysia, it said in a statement released in Kuala Lumpur yesterday.


Under the contract, Scomi will be supplying synthetic-based mud and services, packaged with drilling waste management equipment.


Scomi's ability to provide competitive packaged services is a result of its recent successful acquisition of a drilling waste management company, Oiltools International Ltd. Subject to drilling activities to be undertaken by Shell, it is estimated that the contract will contribute about RM40 million in sales to the group for the contract duration of one year. This is a separate contract from Scomi's existing contract with Shell.

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