Malaysian rig owner UMW Drilling has bought two jack-up drilling rigs at a price of $434m from China-based Tianjin Haiheng Shipbuilding & Offshore Engineering Service.
 

The rigs, each costing USD 217m, are slated for completion in September 2014 and December 2014, respectively.
 

"The agreement for the purchase of the two jack-up drilling rigs is in line with UMW's plan to enhance the asset fleet for expansion in Malaysia and Asia-Pacific region as well as to improve financial performance over the coming years.¡± UMW Oil & Gas, parent firm of UMW Drilling, said in a regulatory filing.
 

The purchase prices, to be satisfied in cash, will be funded partially from the proceeds of UMW's recently completed initial public offering and the balance by borrowings.
 

Last week, UMW went to Singapore's Keppel FELS to order a single jack-up rig at a price of $218m for delivery in the third quarter of 2015.
 

UMW, which was listed in Kuala Lumpur in November 2013, has set aside MYR1bn ($300m) for capital expenditure this year to strengthen its drilling rig business.  

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