Posted by steveooikp > 2016-11-16 16:17 | Report Abuse

INTRODUCTION



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 Sabah Shell Petroleum Company Ltd (“SSPC”) for the Provision of Effluent Discharge Pipeline Replacement for Labuan Crude Oil Terminal (“Contract”).



INFORMATION ON THE CONTRACT



Labuan Crude Oil Terminal (“LCOT”) is a facility operated by SSPC that receive, dehydrate, store and export crude from fields located offshore Sabah which are operated by SSPC, PETRONAS Carigali and Repsol via two incoming trunk lines. The processed crude is then exported to tankers and the produced water is treated prior to disposal into the South China Sea via the effluent discharge pipeline.



The Contract involves Engineering, Procurement, Construction, Installation and Commissioning of a new effluent discharge pipeline in LCOT. The transportation and installation shore approach involves the stringing of the new pipeline in the beach area in the vicinity of LCOT. The pipeline will then be towed into the water and buried under the seabed.



FINANCIAL EFFECTS


The lump-sum Contract having a value of more than RM25 million is effective from October 2016 until the completion of the project, estimated to take approximately 2 years. The Contract is expected to contribute positively towards the earnings and net assets per share of Barakah Group for the duration of the Contract.



RISK FACTORS



Risk factors affecting the Contract include, but not limited to, execution risks such as availability of skilled manpower and materials and changes in prices of materials. Barakah Group has, throughout the years, established its track record and expertise to undertake such projects.



As such, the management of Barakah Group believes that the Group is able to mitigate the abovementioned risk factors.



DIRECTORS AND MAJOR SHAREHOLDERS' INTEREST


None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of the Company has any direct or indirect interest in the Contract.


This announcement is dated 10 November 2016.