KUALA LUMPUR (Feb 26): Dagang NeXchange Bhd (DNeX) announced that it has won a two-year contract to provide directional drilling equipment to Baker Hughes (M) Sdn Bhd (BHGE) in Asia Pacific and Middle East.

The contract, won via its subsidiary DNeX Oilfield Services Sdn Bhd, will include the provision of directional drilling/measurement while drilling/logging while drilling (“DD/MWD/LWD”) equipment, said DNeX in a statement today.

“Estimated at about RM9 million per year, the contract will begin on March 1, 2018 for two years and with an extension option of up to two years,” it added.

DNeX group managing director Zainal Abidin Jalil said the group has increasingly built its capabilities and competencies in DD/MWD/LWD services, and the contract will help strengthen DNeX’ position as a regional maintenance, repair and overhaul service provider.

“The contract is an extension of our partnership with BHGE as a modest yet strategic diversification into another geographical market as we establish a foothold outside of Malaysia as a support service provider,” said Zainal.

“We are certainly pleased to be working in another role with BHGE, which is a multinational company that is committed to bring world class technology and best practices working with local companies to serve industry needs,” he added.

DNeX offers fit-for-purpose directional drilling services with its own technical edge in directional drilling and well intervention services, said the company. Its operations sites include Kemaman Supply Base and Asian Supply Base in Labuan.

Shares of DNeX slipped half a sen or 1.05% to close at 47 sen, giving the group a market capitalisation of RM825.09 million.