Barakah gets Petronas contract extension

This article first appeared in The Edge Financial Daily, on July 18, 2018.
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KUALA LUMPUR: Barakah Offshore Petroleum Bhd has secured an extension to its contract with Petroliam Nasional Bhd (Petronas), which is due to expire in December 2018, to Dec 26, 2019.

In a filing with Bursa Malaysia yesterday, Barakah said its wholly-owned subsidiary PBJV Group Sdn Bhd had received a conditional contract extension from Petronas for the provision of transportation and installation of offshore facilities via a letter of contract extension dated April 16, 2018.

Barakah said the scope of the contract includes transportation and installation of facilities such as pipelines, structures and related equipment for offshore oil and gas fields for Petronas and production arrangement contractors within Malaysia.

The value of the contract would depend on the number of work orders issued by the clients during the course of the contract duration, based on mini bidding exercise among the contractors.

"Depending on the actual value of work orders to be secured, the contract is expected to contribute positively towards the earnings and net assets per share of Barakah Group for the entire duration of the contract," it added.

Shares in Barakah closed 0.5 sen or 3.7% higher yesterday at 14 sen, with a market capitalisation of RM115.70 million.