Barakah Offshore Petroleum bags RM20 million contract

PETALING JAYA: Barakah Offshore Petroleum Bhd's wholly-owned subsidiary company PBJV Group Sdn Bhd has received the letter of award for a RM20 million contract from Murphy Sabah Oil Co Ltd and Murphy Sarawak Oil Co Ltd for the provision of production riser tensioner overhaul, maintenance and upgrade for Murphy production operations.
Kikeh Production and Drilling Riser Tensioner (PRT & DRT) system is a critical component of Single Point Anchor Reservoir/Dry Tree Unit (SPAR/DTU). PRT & DRT is vital in maintaining the stability of SPAR and wellhead riser. The contract involves the overhaul of Kikeh DTU to like new condition, and the modification and improvement of PRT to extend the service life.
The contract is for two years with an option for extension of one year; from expected commencement in December 2016. It is expected to contribute positively towards the earnings and net assets per share of Barakah Group for the duration of the contract.
Barakah said risk factors affecting the contract include, but not limited to, execution risks such as availability of skilled manpower and materials and changes in prices of materials.
"Barakah Group has, throughout the years, established its track record and expertise to undertake such projects. As such, the management of Barakah Group believes that the group is able to mitigate the risk factors," it said.