PETALING JAYA (June 11): Upstream oil and gas player Barakah Offshore Petroleum Bhd expects its overseas operations in Southeast Asia and the Middle East to start generating revenue from the third quarter of this year, said its president and chief executive officer of international operations Azman Shah Mohd Zakaria.

"We are hoping the overseas operations generate around 5% of the group's revenue this year, and going forward to contribute at least 10% in the next two to three years," he told reporters after the group's annual general meeting here today.

Currently, Barakah has an outstanding orderbook of RM2 billion, of which 30% are international projects and the remaining 70% local.

Azman Shah said the orderbook will provide earnings visibility for the next two years.

"The bulk of our orderbook relates to transport and installation business amd followed by pipeline projects. I would say that our success rate is about 10% to 20%," said Barakah founder and executive deputy chairman Nik Hamdan Daud.

"We are also looking to replenish the orderbook by some RM300 million this year," he added.

Nik Hamdan said the group will be strengthening its presence in Sharjah, the United Arab Emirates (UAE), as parts of plans to broaden its geographical footprint.

In the UAE, he said Barakah is eyeing for a pipeline services job on a joint-venture basis.

Besides Sharjah, Barakah also has an office in Al-Khobar, Saudi Arabia operated by its 85%-owned PBJV Gulf Co Ltd, in which it is bidding for some 40km pipeline job that is bordering Kuwait.

"We were informed yesterday that the pipeline project in Saudi Arabia will be put on hold. This is the third time that this has happened, but we must also understand their situation. We are among the three bidders shortlisted for the project," he said.

Nevertheless, Nik Hamdan said the group does not solely rely its growth on this project.

"If there are opportunities there, then that will be great. But we are also constantly assessing other potential market."

In the Middle East, Nik Hamdan noted that Barakah's tenderbook stood at some US$130 million.

"In Southeast Asia, our orderbook in Indonesia and Vietnam is about US$30 million. Malaysia, of course, remains our stronghold fort as we see a lot of projects will go on for economic reasons. But we are mindful of the player's move to cut costs and expenditures," he said.

Barakah is also eyeing to make a presence in Turkemenistan, Uzbekistan and Azerbaijan.

"It is very preliminary and we are conducting internal research on venturing into this country. At the same time, we are trying to understand the Myanmar market," he added.

Barakah is controlled by Nik Hamdan with a 48.934% stake, while Felda Investment Corp Sdn Bhd is the second largest shareholder with a 9.208% stake.