KUALA LUMPUR (Nov 9): Handal Energy Bhd said its 51%-owned subsidiary Borneo Seaoffshore Engineering Sdn Bhd has secured a pipeline isolation services contract from ExxonMobil Exploration and Production Malaysia Inc.
Handal said the contract does not have any specific value as it is on a “call-out” basis, whereby work orders will be issued at the discretion of ExxonMobil based on its activities schedule and rates throughout the duration of the contracts.
The contract is for a five-year duration with an extension option of an additional one year for the provision of pipeline isolation services for ExxonMobil-operated platforms, the group said in a filing today.
“The contract is expected to contribute positively to the earnings of Handal group for the financial year ended June 30, 2021 and in subsequent financial years until the expiry of the contract,” it added.
Handal’s share price closed unchanged at 18.5 sen today, valuing the group at RM40.48 million.