Coastoil Dynamic Secures Contract Extension With PEMEX

Coastal Contracts' joint venture company in Mexico, Coastoil Dynamic, secured a contract extension for gas sweetening services with PEMEX until the end of 2025.

The extension, secured through an addendum to the existing contract, marks a substantial increase in the maximum contract value, soaring from MX$1.14 billion (US$66.867 million) to MX$2.78 billion. This development is expected to have a positive impact on Coastal's earnings and net assets for the financial years ending Dec. 31, 2024, and Dec. 31, 2025.

Coastoil Dynamic initially won the contract in January 2021 for a tenure of 32 months, excluding the period allocated for plant construction. Situated at the Ixachi field in Veracruz, Mexico, the gas sweetening plant boasts a capacity to process up to 180MMcf/d of wet sour gas. The Ixachi field itself is located 26km northeast of Tierra Blanca, in Veracruz state.

Directors and shareholders maintain no direct or indirect interest in the contract, with the company's board affirming that the addendum serves the best interests of Coastal.

Coastal Group is a global integrated oil & gas services and energy infrastructure solutions provider. The company is listed on the main board of Bursa Malaysia.