DNeX bags solid expandable tubulars provision contract from HESS

“We intend to capitalise on the contract to tap into more opportunities for the provision of solid expandable tubulars in South East Asia, which total available market is expected to be worth more than USD20 million in the next five years,” he said.

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Sharifah Kasim Al Edrus
Head, Media & Investor Relations
Dagang NeXchange Berhad
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Email: sharifah.kasim@dagangnet.com

Kuala Lumpur, 23 October 2018 – Dagang NeXchange Berhad (“DNeX”), through subsidiary company DNeX Oilfield Services Sdn Bhd (“DOS”), has been awarded a contract for the provision of solid expandable tubulars by HESS Exploration and Production Malaysia BV.

The contract is for a period of one year with another year renewal option, and meant to service HESS’ North Malay Basin project. The contact is for on call basis, and it has an estimated total contract value of up to USD5 million.

According to En Zainal Abidin Jalil, Group Managing Director of DNeX, the contract is a strategic expansion of DOS’ current offerings namely in Directional Drilling/Measurement While Drilling/Logging While Drilling (“DD/MWD/LWD”) equipment and services.

“We intend to capitalise on the contract to tap into more opportunities for the provision of solid expandable tubulars in South East Asia, which total available market is expected to be worth more than USD20 million in the next five years,” he said.

Furthermore, solid expandable tubulars services can be further extended to include casing repair services as add on services, he added.

DOS has partnered with Enventure Global Technology, a Shell Technology Ventures portfolio company, to provide niche technology especially deep water and depleted reservoir drilling environment for the contract.

The technology maximises hole section internal diameter (“ID”) using expandable open hole liners thus enabling more casing points, and minimises the well tapering effect thus enabling oil operators to attain their target depth with preferable well ID for maximum well productivity.

Similarly the use of solid expandable tubulars for wellbore slimming can dramatically reduce total development costs by increasing rate of penetration (ROP), reducing consumables and enabling the use of smaller, lower cost rigs.