Barakah Offshore bags Petronas deal (Malaysia)
- Business & Finance
Barakah Offshore Petroleum’s subsidiary, PBJV Group Sdn Bhd (PBJV), has received a Letter of Award from Malaysian oil company Petronas, for the supply, refurbishment and maintenance of cleaning pig and associated services in Sabah and Sarawak, Malaysia.
According to Barakah’s Bursa Malaysia filing, the contract duration is two years, from June 26, 2015 to June 25 , 2017, with one year extension option from June 26, 2017 to June 25, 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 pigging operations. The scope is part of Petronas’ yearly Operational 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 company noted that the total value of the contract is dependent on the actual work orders to be issued by Petronas from time to time during the contract period.
Barakah management estimates that the value of the contract is approximately RM20 million to RM30 million ($5M to $7.5M), based on the current estimated work programme.