KUALA LUMPUR (Oct 21): Barakah Offshore Petroleum Bhd is teaming up with Hong Kong-listed Hilong Holding Ltd to explore prospects for offshore transportation and installation projects for platform heavy lifts and pipelay, as well as full engineering, procurement, construction, installation and commissioning (EPCIC) for offshore oil and gas field development projects in Malaysia.

In a filing with Bursa Malaysia today, Barakah said its wholly-owned subsidiary, PBJV Group Sdn Bhd, has signed a memorandum of understanding (MOU) with Hilong Marine Engineering (Hong Kong) Ltd (HMEL), a subsidiary of Hilong Holding.

HMEL is the owner of a 3,000-tonne derrick pipe lay barge, called Hilong 106.

"PBJV and Hilong desire to work together on a non-exclusive basis in exploring opportunities for collaboration, built on the strengths of both parties, particularly in transport and installation prospects, including pipelay and platform installation and full EPCIC for field developments projects, where the capability suits the technical capabilities of Hilong 106 and its cost competitiveness," said Barakah.

The MOU will commence on Oct 21 and will expire in two years.

Barakah said the MOU is not expected to have any material effects on its issued share capital, net assets and earnings for the financial year ending Dec 31, 2015.

Barakah's shares closed unchanged at 98 sen today, bringing it's market capitalisation to RM802.6 million.

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