LABUAN – Barakah Offshore Petroleum Bhd has won a contract for the installation of an effluent discharge pipeline for Labuan Crude Oil Terminal worth RM25 million.
According to its bourse filing today, Barakah secured the contract via its unit PBJV Group Sdn Bhd from Sabah Shell Petroleum Company Ltd for the provision of effluent discharge pipeline replacement for the Labuan Crude Oil Terminal or LCOT.
“The contract involves engineering, procurement, construction, installation and commissioning of a new effluent discharge pipeline in LCOT,” said Barakah.
It added the transportation and installation shore approach involves the stringing of the new pipeline in the beach area in the vicinity of LCOT.
“The pipeline will then be towed into the water and buried under the seabed,” it said.
According to Barakah, the lump-sum contract having a value of more than RM25 million is effective from October 2016 until the completion of the project, estimated within two years.
“The contract is expected to contribute positively to our earnings,” it added.
LCOT is a facility operated by Sabah Shell Petroleum Co.
It receives, dehydrates, stores and exports crude from fields located off the shores of Sabah operated by Sabah Shell Petroleum, Petronas Carigali Sdn Bhd and Repsol via two incoming trunk lines.
The processed crude is then exported to tankers and the produced water is treated prior to disposal into the South China Sea via the effluent discharge pipeline.
Shares in Barakah fell one sen or 1.5% to close at 65.5 sen Thursday, for a market value of RM540.45 million.