INVESTOR RELATIONS

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

BURSA ANNOUNCEMENTS
Date: 12 August 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 PETRONAS Carigali Sdn Bhd ("PCSB") for the Supply, Refurbishment and Maintenance of Cleaning Pig and Associated Services ("Contract").

 

INFORMATION ON THE CONTRACT

The Contract comprises the supply, refurbishment, and maintenance of cleaning pig and associated services in Sabah and Sarawak. The Contract duration is two years from 26 June 2015 to 25 June 2017; with one year extension option from 26 June 2017 to 25 June 2018. The work scope covers the procurement and supply of pipeline inspection gauges ("pigs"), procurement of refurbishment kits, refurbishment of pigs, training and ad hoc services related to pigging operations. The scope is part of PCSB's yearly Operational Pigging Programme ("OPP"). OPP is an essential element in the maintenance of pipeline system in order to maximize production flow by maintaining internal bore, mitigate internal corrosions and also maximize the design life of the pipeline.

 

FINANCIAL EFFECTS

The total value of the Contract will depend on the actual work orders to be issued by PCSB from time to time during the Contract period. Barakah management estimates that the value of the Contract to be approximately RM20 million to RM30 million, based on the current estimated work programme. 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 12 August 2015.

 

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