KUALA LUMPUR (Aug 12): Barakah Offshore Petroleum Bhd has bagged a contract worth up to RM30 million from Petronas Carigali Sdn Bhd to provide cleaning pig and associated services in Sabah and Sarawak.

In a filing with Bursa Malaysia today, Barakah said its wholly-owned subsidiary PBJV Group Sdn Bhd has received a letter of award from Petronas Carigali for the proposed job.

"The total value of the contract will depend on the actual work orders to be issued by Petronas Carigali from time to time during the contract period.

"Barakah management estimates that the value of the contract to be about RM20 million to RM30 million, based on the current estimated work programme," said Barakah.

The contract duration is for two years from June 26, 2015 to June 25, 2017, with a one-year extension option to June 25, 2018.

The work scope covers the procurement and supply of pipeline inspection gauges (pigs), procurement of refurbishment kits, refurbishment of pigs, training and ad hoc services related to pigging operations.

Barakah said the scope is part of Petronas Carigali’s yearly operational pigging programme, which is an essential element in the maintenance of pipeline system in order to maximise production flow by maintaining internal bore, mitigate internal corrosions and also maximise the design life of the pipeline.

Shares in Barakah (fundamental: 1.95; valuation: 0.3) closed down 7.5 sen or 8.06% at 85.5 sen today, bringing a market capitalisation of RM764.19 million. 

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)