Barakah Offshore Petroleum Berhad (Barakah) is pleased to announce that its wholly-owned subsidiary company, PBJV Group Sdn Bhd (PBJV) has received the Letter of Award from Murphy Sarawak Oil Co Ltd, Murphy Sabah Oil Co Ltd and Murphy Peninsular Malaysia Oil Co Ltd (collectively referred to as "Murphy"), for an umbrella contract for the provision of welding services for drilling and subsea program (Contract).
Information on the Contract
The Contract include provision of welding services required for Murphy's drilling and subsea programme for period from the date of the award to 2018. The scope entails providing welding services including manpower, equipment and consumables on work order basis to perform welding work for Murphy's offshore drilling and subsea programs through-out the duration of the Contract.
Financial Effects
The total value of the Contract will depend on the actual work orders issued by Murphy during the Contract period. It 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.
