KUALA LUMPUR (Aug 8): Barakah Offshore Petroleum Bhd’s wholly-owned subsidiary PBJV Group Sdn Bhd has bagged a contract from Brunei Shell Petroleum Co Sdn Bhd for the SPM2 replacement project at an undisclosed value.
In a filing on Tuesday (Aug 8), the company said PBJV received the letter of award from Brunei Shell Petroleum, whereby the main contract scope is to supply engineering work, supply of materials, fabrication, load-out, decommission, installation and commissioning of one unit SPM2 (Single Point Mooring Buoy) at the shoreline of Brunei Darussalam.
The contract is expected to commence immediately, with a delivery date anticipated in the third quarter of 2024, and the company predicts a positive impact on earnings and net assets per share for the duration of the contract.
Despite potential execution risks such as availability of skilled manpower and materials, as well as changes in prices of materials and logistics, it said Barakah Group's established track record and expertise could effectively mitigate such risks in relation to the contract.
In a filing with Bursa Malaysia early April, the company said PBJV had on April 6 received a notification from Petroliam Nasional Bhd (Petronas), which stated that the state oil company has uplifted the close to four-year suspension on PBJV’s licence.
“Following the upliftment, any licence renewal application by PBJV is subject to assessment and consideration in accordance with the Petronas’ licensing & registration requirements,” the company said.