Barakah Offshore Petroleum Berhad ("Barakah" or the "Company") is pleased to announce that its wholly-owned subsidiary company, PBJV Group Sdn Bhd ("PBJV"), has received the Letter of Award from PETRONAS Carigali Sdn Bhd ("PCSB") for the Supply, Refurbishment and Maintenance of Pipeline Cleaning Pig and Associated Services ("Contract").
The Contract comprises the supply, refurbishment, and maintenance of cleaning pig and associated services in Sabah and Sarawak. The Contract duration is two years from 26 June 2015 to 25 June 2017; with one year extension option from 26 June 2017 to 25 June 2018. The work scope covers the procurement and supply of pipeline inspection gauges ("pigs"), procurement of refurbishment kits, refurbishment of pigs, training and ad hoc services related to pipeline pigging operations, such as pig tracking and signaling. The scope is part of PCSB's yearly Operational Pipeline Pigging Programme ("OPP"). OPP is an essential element in the maintenance of pipeline system in order to maximize production flow by maintaining internal bore, mitigate internal corrosions and also maximize the design life of the pipeline.
The total value of the Contract will depend on the actual work orders to be issued by PCSB from time to time during the Contract period. Barakah management estimates that the value of the Contract to be approximately RM20 million to RM30 million, based on the current estimated work programme. The Contract is expected to contribute positively towards the earnings and net assets per share of Barakah Group for the duration of the Contract.