T7 Global bags repair job from Petronas Carigali, manpower contract from Vestigo

This article first appeared in The Edge Financial Daily, on March 13, 2019.
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KUALA LUMPUR: T7 Global Bhd has bagged two contracts, with the first to provide splash zone structural repair and maintenance to Petronas Carigali Sdn Bhd, and the second to provide manpower services to Vestigo Petroleum Sdn Bhd

The Petronas Carigali job was secured by its subsidiary, Tanjung Offshore Services Sdn Bhd (TOS), receiving the letter of award on Dec 24, 2018. The deal is for two years beginning Jan 2, 2019, T7 Global said in a filing with Bursa Malaysia yesterday.

“The said contract is based on the unit rates as stipulated in the contract price schedule,” it said. TOS has an option to extend the contract for an additional year.

Separately, TOS’ subsidiary Fircroft Tanjung Sdn Bhd received a letter of award from Vestigo on Oct 19, 2018 for an umbrella contract to provide manpower service. The contract is also for two years, starting Oct 19, 2018, with an option to extend for another one year, T7 Global said.

“The technical services and deliverables provided for this contract shall be delivered based on the scope of work and duration stipulated in the contract documents and/or in each work order issued to Fircroft Tanjung,” the group said.

Meanwhile, Fircroft will obtain and maintain a valid licence with Petroliam Nasional Bhd throughout the said contract’s duration, T7 Global said.

The contracts are expected to contribute positively to T7 Global’s earnings and net assets per share for the financial year ending Dec 31, 2019, it said.

T7 Global shares closed three sen or 5.94% higher at 53.5 sen, with a market value of RM221.74 million.