Barakah in talks with potential investors

PETALING JAYA: Financially distressed BARAKAH OFFSHORE PETROLEUM BHD said it is in talks with potential investors to piece together a rescue plan, but the suspension of its operating licence by Petroliam Nasional Bhd (Petronas) is likely to complicate any deal.

Barred from participating in local oil and gas projects for the next three years, group president and CEO Nik Hamdan Daud told reporters yesterday that he hoped to conclude its regularisation plan by May 2020.

In the meantime, the group was forced to look for new jobs elsewhere.

“Currently, our tender book value amounts to RM800mil, but we are going to be more aggressive in tendering for more jobs in the first quarter of 2020, ” he told reporters after the company’ AGM yesterday.

The group is eyeing for jobs opportunities around the region and in the Middle East.

“We are also diversifying our capabilities to include pipe maintenance and minor fabrication, ” he said.

But the group’s is facing tough challenges in its efforts to revive its ailing fortune.

Earlier in May, Barakah was listed as a Practice Note 17 (PN17) affected issuer by Bursa Malaysia after it received a notice of demand from Export-Import Bank of Malaysia for defaulted payments amounting to US$43.59mil (RM182.6mil).

“As for our regularisation plan to lift the company out of the Practice Note 17 (PN17) status, we are in talks with two parties – one international and one local, ” Nik Hamdan said.

“We hope to conclude our regularisation plan by the May 2020 deadline, ” he added.

Source: TheStar