Cahya Mata Expands Integrated Drilling Ops

Cahya Mata Sarawak Bhd's three-year contract from Pertamina Hulu Energy ONWJ to provide drilling waste management services underscores the push to prioritise growing the market share of the group’s integrated drilling services.

Indonesia’s state-owned oil and gas (O&G) firm Pertamina has been operating in the ONWJ block since 1966. The firm has offshore O&G production facilities, such as platforms, subsea pipelines and storage facilities.

Cahya Mata group managing director Datuk Seri Sulaiman Abdul Rahman Taib said, in the company’s financial year ended Dec 31, 2024 (FY24) annual report, that the contract, which was slated to commence in first quarter of 2025, underscored Cahya Mata Oiltools Sdn Bhd’s capabilities in delivering specialised solutions to the energy sector.

“Building on the positive growth Oiltools has demonstrated over the past year, Cahya Mata is looking to strengthen the unit’s integrated drilling service offerings to expand market share and enter new markets.

“A strategic advantage is the presence of our skilled workforce in all the countries that we operate. This goes a long way in building trust with our clients and business partners,” he said.

Cahya Mata’s subsidiaries – Oiltools and Oiltools International Sdn Bhd – acquired Scomi Oilfield Ltd together with various companies and assets within the Oilfield group, for RM21mil in September 2022 to diversify into the global energy sector.

Scomi Energy, via the Oilfield group, has a presence in 15 markets across Asia, the Middle East, Europe and Africa offering drilling fluids services and drilling waste management services.

In 2025, Oiltools will priortise revenue growth through market expansion, client acquisition and cost optimisation.

“As geopolitical uncertainties persist, O&G operators are expected to streamline operations and pursue greater cost efficiency. This creates a timely opportunity for Oiltools to leverage its strengths in drilling fluids and waste management to secure new contracts and expand its market footprint.

“Oiltools will focus on defending existing market share while expanding into high-growth regions, particularly in South-East Asia, the Middle East and Africa.

“It is also exploring new frontiers in Latin America and Central Asia, where increased exploration and production activities offer strong growth potential.

“Strategic partnerships with both local collaborators and global technology providers will be key to broadening market access, strengthening service delivery and supporting long-term expansion,” said the Sarawak conglomerate.

On Cahya Mata’s phosphates plant in Samalaju Industrial Park, Bintulu, Sulaiman said the company was confident of commencing operations this year.

“Despite multiple challenges, primarily due to the impact of Covid-19 pandemic, we remain fully committed to bring the plant into commercial operation.

“All hands are on deck to ensure the necessary preparations, from operational readiness to regulatory compliance and stakeholder engagement.

“As Cahya Mata Phosphates progresses towards commercialisation, the company is poised to be a major contributor to the group when it reaches full operating capacity, riding primarily on the world’s need for food security given that phosphates is widely used in the agriculture as well as the food and beverage industry,” he added.

The commercial operation of the phosphate plant project has been hindered by the termination of electricity supply by Syarikat Sesco Bhd due to an ongoing dispute on the power purchase agreement signed with Cahya Mata Phosphates (formerly Malaysian Phosphate Addictives (Sarawak) Sdn Bhd) in 2019.

Cahya Mata Phosphates has filed a claim of about RM1.2bil against Sesco for losses suffered from the discontinuation of power supply while SEsco has made a counterclaim of more than RM342mil against the former, with the dispute now under arbitration.

The phosphate project has been a drag on the bottom line of Cahya Mata, as Cahya Mata Phosphates incurred pre-tax loss of RM96.79mil in FY24, down from RM156.7mil in FY23.

On the group’s core cement business, Sulaiman said the group’s investment in a new clinker production line, designed to produce 6,000 tonnes per day was in line with growing demand for cement driven by major infrastructure projects announced by the state.

He expected the state-of-the-art facility to begin operations by 2027 to strengthen the group’s market position.

Sulaiman said in addressing the increasing demand for concrete products, Cahya Mata has expanded its footprint with additional batching plants strategically located across Sarawak.

“This expansion will enhance our service delivery by ensuring closer proximity to key development areas, aligning with our commitment to operational efficiency and customer satisfaction,” he added.

$CMSB / 2852 (CAHYA MATA SARAWAK BERHAD)

Source from The Star