KUALA LUMPUR: Having recently secured a contract from GOM Resources Sdn Bhd for pre-commissioning services for a 282km pipeline from Kerteh, Terengganu to the Malaysia/Thailand Joint Development Area on the border, Barakah Offshore Petroleum Bhd (Barakah) yesterday clinched another major contract.
In a filing with Bursa Malaysia yesterday, Barakah said its wholly-owned subsidiary, PBJV Group Sdn Bhd, together with its consortium partner, CPM Construction Sdn Bhd, has secured a RM260 million contract from Petronas Gas Bhd for the procurement, construction and commissioning of the Pengerang pipeline.
Works for the Pengerang pipeline will commence immediately and are scheduled to be completed by the second quarter of 2016.
Barakah said PBJV has 50% share of the liabilities and obligations of the contract and 50% share of the benefits and profit to be derived from the contract by the consortium.
“The contract is expected to contribute positively towards the earnings and net assets per share of the Barakah group during the duration of the contract.”
Barakah said risk factors affecting the contract include execution risks, such as availability of skilled manpower and materials and changes in prices of materials.
“The Barakah group has, throughout the years, established its track record and expertise to undertake such projects. As such, the management believes that the Barakah group is able to mitigate the above mentioned risk factors,” it said.
Barakah’s contract with GOM was secured about 10 days ago, and it is expected to commence in the third quarter of financial year 2014 ending Dec 31 (3QFY14). The project is expected to be completed by 1QFY15.
This article first appeared in The Edge Financial Daily, on April 24, 2014.