KUALA LUMPUR (May 29): Perdana Petroleum Bhd's unit clinched a three-year umbrella contract for offshore support vessel services for Petroliam Nasional Bhd (Petronas)'s petroleum arrangement contractors' (PAC) drilling and project activities.

In a bourse filing, the group said its wholly-owned subsidiary Perdana Nautika Sdn Bhd (PNSB) had acknowledged receipt of a letter dated April 9, 2019 from Petronas appointing the company as a panel contractor.

Under the agreement, the unit will provide six anchor handling tug and supply vessels and five accommodation work barges to the national oil company.

"PNSB has on May 29, 2019 received the approval from Petronas to release the announcement regarding the award of the umbrella contract," it said.

The contract is on a call-out basis and will last for three years from the commencement date with two options to extend the contract by one year each.

PNSB shall provide the vessels and barges, which are manned by its crew, to perform continuous 24-hour services to assist in or partake in servicing drilling rigs, offshore installation, towing and anchor jobs.

The value of the contract is dependent on the number of days the vessels are hired based on PAC instructions.

"The umbrella contract is expected to contribute positively to the earnings and net assets of PPB (Perdana Petroleum) Group for the financial years ending Dec 31, 2019 to Dec 31, 2022. The umbrella contract will not have an effect on the share capital and shareholding structure of PPB," said the group.

The counter closed 7.69% or two sen higher to close at 28 sen — with 6.03 million shares traded — giving it a market capitalisation of RM217.97 million.