KUALA LUMPUR (Aug 9): Barakah Offshore Petroleum Bhd has been awarded a five-year contract to provide maintenance, construction and modification (MCM) services for Sapura Energy Bhd's oil and gas fields offshore Peninsular Malaysia.

Its wholly-owned subsidiary PBJV Group Sdn Bhd won the contract from Sapura Exploration and Production Inc to provide the services from 2018 to 2023, said Barakah in a filing with the stock exchange today.

The contract, which is effective July 11, has no fixed value and will be based on work orders, which will be issued by the client from time to time during the duration of the contract, said Barakah.

The group expects positive contribution from the contract towards the earnings and net assets per share of the group for the duration of the contract.

"We are pleased to have secured these MCM contracts. These contracts are expected to contribute positively to the group's bottom line and replenish our orderbook, while keeping us occupied for the next five years," Barakah's chief executive officer Nik Hamdan Daud said in a separate statement.

"Moving forward, we believe 2019 will be an exciting year for us as more oil and gas projects are expected to come on stream following a recovery in the sector," he added.

Barakah's share price rose 1.5 sen or 10% to close at 16.5 sen today, for a market capitalisation of RM136.36 million.