PETALING JAYA: Barakah Offshore Petroleum Bhd is looking for a fresh start after the completion of its restructuring exercise by year-end.
Acting group CEO Abdul Rahim Awang said the integrated oil and gas (O&G) solutions provider was in the advanced stage of its restructuring process, while talks with major large creditors were in favour of its revamp scheme.
“We have secured a white knight. We are under a non-disclosure agreement, we can’t reveal who the white knight is. That is the first we need as we require fresh capital injection, so the white knight is important,“ he told reporters after announcing the signing of a memorandum of understanding (MoU) with Singapore-based Vallianz Holdings Ltd today.
As at Dec 31, 2018, Barakah Offshore’s total liabilities stood at RM335.6 million.
Abdul Rahim expects the company to finalise its restructuring scheme by next month and resolved its issues with creditors in the next two to three months.
“We need to get at least 75% of creditors to support and approve the scheme for us to move forward. We are fairly confident that we can get that 75%,“ he added.
Abdul Rahim said with the completion of the restructuring scheme, Barakah would be cash flow positive at the project level and also its bottom line.
Meanwhile, the group and Vallianz will form a strategic alliance to explore business opportunities in Malaysia and the Middle East.
By joining forces, both parties are able to leverage on each other’s strengths to expand their scope of services, technical capabilities and geographical reach along the O&G value chain.
Under the MoU, Barakah Offshore will offer its established engineering and operational capabilities to support Vallianz’s existing and future projects, including technical consultations and feasibility studies.
“The MoU with Vallianz will open up new markets for us and also allow us to have access to assets that they have.
“These assets will allow us to bid more competitively because a lot of time when we bid for projects especially for offshore operations, we bid as a package as it comes with varying spread that include other vessels as well,“ said Abdul Rahim.
Barakah Offshore has identified one project in the Middle East and will come up with a proposal.
