INVESTOR RELATIONS

FORM OF NOTICE OF CONVERSION OF 5-YEAR 3.5% REDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS ("RCULS" OR "BARAKAH-LA")

BURSA ANNOUNCEMENTS
Date: 25 May 2015

OTHERS BARAKAH OFFSHORE PETROLEUM BERHAD - AWARD OF CONTRACT


Type Announcement
Subject OTHERS
Description BARAKAH OFFSHORE PETROLEUM BERHAD
- AWARD OF CONTRACT

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 Sarawak Shell Berhad/Sabah Shell Petroleum Co. Ltd. ("collectively referred to as "Shell") for price agreement for the supply of operational pigs and pigging accessories and related equipment and services ("LOA").

 

INFORMATION ON THE LOA

The LOA is for a price agreement to be entered for the supply of operational pipeline inspection gauges ("pig") and its related accessories, equipment and services. Until the signing of the price agreement, the LOA shall constitute the agreement between Shell and PBJV. The pigging operation will be carried out offshore Sarawak and Sabah mainly for the operational maintenance of oil and gas pipelines. The duration of the LOA is three years from 15th April 2015 until 14th April 2018, with an option to extend for further one year until 14th April 2019.

 

FINANCIAL EFFECTS

The total value of the LOA will depend on the actual work orders to be issued by Shell from time to time during the duration of the LOA. The LOA is expected to contribute positively towards the earnings and net assets per share of Barakah Group for the duration of the LOA.

 

RISK FACTORS

Risk factors affecting the LOA include, but not limited to, execution risks such as availability of skilled manpower and materials and changes in prices of materials. PBJV 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 LOA.


This announcement is dated 25 May 2015.




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