Malaysia-listed Barakah Offshore Petroleum has won a contract from oil company Sarawak/Sabah Shell to supply pigs and pigging accessories and related equipment and services.
Pigs are devices for cleaning and inspecting pipelines.
The contract agreement (letter of award, or LOA )was signed by PBJV Group, a wholly owned subsidiary of Barakah. The duration of the LOA is three years from 15 April 2015, with an option to extend another year.
The LOA will include the pigging operation that is carried out in offshore Sarawak and Sabah, mainly for the operational maintenance of oil and gas pipelines.
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Barakah stated in its filing to Bursa Malaysia that the total value of the LOA will depend on the actual work orders to be issued by Shell during the duration of the contract. In the meantime, the LOA is expected to contribute positively towards the earnings and net assets per share of Barakah Group for the duration of the LOA.
In April 2015, the company had received LOA from Kebabangan Petroleum Operating Company for the provision of topside maintenance services in Sabah, Malaysia. The contract duration is for one year effective from 2 April with an extension option for another year.