KUCHING: Barakah Offshore Petroleum Bhd (Barakah Offshore) has secured a contract for the repair and maintenance of the Sabah Sarawak Gas Pipeline (SSGP).
The company in a filing to Bursa Malaysia yesterday said its wholly-owned subsidiary PBJV Group Sdn Bhd has received a letter of award from Petronas Gas Bhd for the contract.
The SSGP is a network of onshore pipeline that link Sabah Oil and Gas Terminal in Kimanis, Sabah and Petroliam Nasional Bhd’s (Petronas) Liquefied Natural Gas (LNG) Complex in Bintulu, Sarawak.
The length of the pipeline is 503km.
Barakah Offshore added the scope of the contract include inspection, testing, repair and maintenance of the pipes and related infrastructures to maintain the pipeline integrity.
The duration of the contract is for two years from Dec 1 until Nov 30, 2017. Petronas Gas has the option to extend the contract period for an additional one year.
The value of the contract will depend on the number of work programs to be carried out for the duration of the contract based on unit rates specified in the contract.
The contract is expected to contribute positively towards the earnings and net assets per share of the group for the duration of the contract.