This article first appeared in The Edge Financial Daily, on March 8, 2016.

KUALA LUMPUR: Carimin Petroleum Bhd has bagged a contract from Petronas Carigali Sdn Bhd to provide mechanical services.

In a filing with Bursa Malaysia yesterday, Carimin said the group, via its wholly-owned subsidiary Carimin Engineering Services Sdn Bhd (CES), was awarded the contract on Feb 24.

The project will be for two years, from March 2 this year to March 1, 2018, with an option to extend for another year.

“The contract is on a call-out basis, with Petronas Carigali issuing the release order as and when there are requirements to perform the service,” said Carimin.

As such, Carimin said the contract value was not disclosed as the total value of the scope of work will depend on the duration of the services, and costs related to project management, mechanical services, materials and other related services.

“The release orders when issued are expected to contribute positively towards the earnings and net asset per share of the company for the duration of the work scope,” it added.

Carimin warned that risk factors affecting the work scope include execution risks, such as availability of skilled manpower and materials, and changes in material prices.

“[However,] CES has throughout its years established its track record and expertise to undertake such projects. As such, the management of the company is confident that they will be able to mitigate the above-mentioned risk factors,” it said.

Carimin shares closed one sen or 1.1% higher at 46 sen yesterday, with a market capitalisation of RM107.58 million.