KUALA LUMPUR (Jan 24): Barakah Offshore Petroleum Bhd will explore other options in disposing of its Kota Laksamana 101 pipelay and accommodation barge, as its agreement to auction the vessel has lapsed.

Barakah Offshore had targeted a minimum going price of US$11.4 million (RM53.9 million) for the 12-year-old vessel under the auction process.

“Over the last six months, the company has explored alternative avenues for the disposal of the KL101 Barge.

“In assessing its options, the company had decided to not renew the commissioning agreement for the time being to enable the company flexibility to explore any potential offers or opportunities that may arise prior to obtaining shareholders’ approval for the proposed disposal,” Barakah Offshore’s bourse filing said.

The group said it will decide on the final mode of the disposal — either via direct disposal or auction — after obtaining shareholders’ approval on the matter.

“The company will consider, amongst others, the prevailing market conditions, as well as the asking prices for the KL101 barge at the material time,” it added.

Prior to the proposed auction, Barakah had gone through four proposals from interested buyers, but none of them materialised.

The disposal, it said when announcing the proposed auction last December, offers an opportunity to dispose of “an asset that is not generating revenue/profits” as the vessel had no ongoing contracts.

Barakah Offshore has largely been in the black in recent quarters. However, the group is currently under Practice Note 17 category, as it carried negative equity of RM17 million amid retained losses of RM177 million at end-September.

The group, which focuses on pipeline and commissioning services, also has short-term borrowings of RM52.04 million, against cash of RM13.45 million.

Shares of Barakah Offshore last traded at four sen, giving it a market capitalisation of RM40.1 million.