This article first appeared in The Edge Financial Daily on August 10, 2018

KUALA LUMPUR: Barakah Offshore Petroleum Bhd has secured a five-year contract to provide maintenance, construction and modification (MCM) services for Sapura Energy Bhd’s oil and gas fields off Peninsular Malaysia.

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

The contract that started on July 11 has no fixed value and will be based on work orders that will be issued by the client from time to time, said Barakah.

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

“These contracts are expected to contribute positively to the group’s bottom line and replenish our order book, while keeping us occupied for the next five years,” Barakah 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 said.

Barakah’s share price rose 1.5 sen or 10% to close at 16.5 sen yesterday, with a market capitalisation of RM136.36 million.