UMW SEES OIL AND GAS DIVISION BECOMING BIGGEST REVENUE CONTRIBUTOR

From Premalatha Jayaraman

LABUAN (Malaysia), May 10 (Bernama) -- UMW Holdings Bhd is confident that
its oil and gas division will become the group's biggest revenue contributor in
the near future due to strong growth potential.

Its president and group chief executive officer Abdul Halim Harun said
it had targeted 35 per cent contribution from the division compared with the
current 20 per cent.

"We can see a positive growth sign. Currently, the division is very busy
bidding for a few projects locally," he told reporters after the official
opening of UMW Oilpipe Services Sdn Bhd's West Plant here Monday.

Labuan is the main island of the Malaysian Federal Territory of Labuan.
Labuan is best known as an offshore financial centre offering international
financial and business services via Labuan IBFC since 1990 as well as a tourist
destination for nearby Bruneians and scuba divers.

With oil prices going upwards and the US dollar depreciating, activities in
the oil and gas division were expected to pick up, he said.

He added that the division, which was established in 2002, had continued to
grow rapidly amid the global economic crisis and volatile oil prices.

UMW Holdings' group chairman Asmat Kamaludin said the growing demand
for energy had enabled the division to participate and gain positively in the
sector.

"We have strategised ourselves to take full advantage of the opportunities
and we are optimistic with our capabilities and hope to capture our share in
this fast-growing business," Asmat said.

"We can certainly expect to see more exploration and operation activities
undertaken by the major oil companies and these activities will lead to more
business opportunities," he said.

On expansion plans, Abdul Halim said the division planned to expand into the
Middle East.

The division has operations in 12 countries, including Australia, China,
India, Indonesia, Oman, Singapore, Taiwan, Thailand, Turkmenistan and Vietnam,
he said.

Abdul Halim said the operations in China had established seven pipe
manufacturing, threading and coating plants and the division also has a strong
foothold in India.

He said the division decided to establish a presence in Turkmenistan to
support the operations of Petronas Carigali.

The oil and gas division's business activities include the manufacture of
oil country tubular goods and line pipes, exploration operations, fabrications,
provision of oilfield services and supply of oilfield products.

The new RM20 million (US$6.25 million) West Plant here is a premium
threading plant for oil country tubular goods in Malaysia.

UMW Oil and Gas Bhd's president Zulkifly Zakaria said the new plant was
completed late last year under the management of its subsidiary UMW Oilpipe
Services.

The new plant, which is an expansion of its East Plant, will see a combined
annual production capacity of 80,000 metric tonnes per annum for oil country
tubular goods, he said.

-- BERNAMA