Barakah Secures Offshore IPC Malaysia Contract
Engineering services company Barakah Offshore Petroleum has secured a contract from IPC Malaysia for offshore oil and gas field development.
The agreement will include breakbulk transport, maintenance, construction and modification work for structures and facilities at IPC Malaysia’s offshore oil and gas fields in Peninsular Malaysia.
“The total value of the contract is not fixed and will depend on the actual scope based on work orders to be issued by the client from time to time throughout the duration of the contract,” a Barakah spokesperson said.
Manpower, Material Risks
The contract will be fulfilled by Barakah Offshore subsidiary PBJV Group and will run through July 10, 2023.
“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,” the firm said in a statement.
In filing with the Malaysian exchange, Barakah Offshore outlined capabilities to mitigate execution risks, expecting the project to “contribute positively” towards earnings and net assets per share.
Offshore Infrastructure Develops
Malaysia offshore oil and gas sector is forecast to deliver growth in 2019 as the country’s massive Pengerang refinery and petrochemical integrated development, or RAPID, continues startup.
Commissioning activities have begun at the facility, supporting a new wave of infrastructure development. Since RAPID project began in 2013, it has, been a major driver for breakbulk demand during the construction phase. Once fully online the complex is expected to act as a major driver for the country’s crude distillation capacity.
Malaysia has estimated proven oil reserves of 3.6 billion barrels, the fourth-highest reserves in Asia-Pacific after China, India, and Vietnam, according to the Oil & Gas Journal, with the majority of Malaysia’s oil wealth coming from offshore fields.
Photo: Offshore construction vessel. Credit: Wikimedia
