Barakah obtains a contract extension from Petronas Gas

KUALA LUMPUR: Barakah Offshore Petroleum Bhd yesterday announced an extension of Petronas Gas Bhd 's one – year contract to perform repair and maintenance work on the Sabah Sarawak Gas Pipeline (SSGP).

In a deposit with Bursa Malaysia, Barakah declared its wholly owned subsidiary PBJV Group Sdn Bhd received Petronas Gas's tender letter for the project

The scope of the contract includes the inspection , testing, repair and maintenance of pipes and related infrastructure to maintain the pipeline integrity.

for two years from December 1, 2015 to November 30, 2017, with an option to extend for another year. The contract has since been extended by Petronas Gas until November 30 of this year.

"The value of the contract will depend on the number of work programs to be performed for the duration of the contract on the basis of the unit rates specified in the contract," said Barakah.

Since the beginning of the year , the PBJV Group has received work programs with a total value of RM133 million, which will be executed this year.

"The work programs provided for in the contract are expected to contribute positively to the profit and the benefits of the project. 39 net assets per share of the Barakah Group for the current fiscal year ending December 31, 2018, "added Barakah

SSGP is a terrestrial pipeline system that connects the Sabah oil and gas terminal. Kimanis, Sabah, at the Petronas LNG Complex in Bintulu, Sarawak. The length of the pipeline is 512 km.

Barakah shares remained unchanged at 12.5 sen yesterday, with a market capitalization of RM103 million.