PETALING JAYA: Debt-laden oil and gas (O&G) services company Barakah Offshore Petroleum Bhd (BOP) has formed a strategic alliance with Singapore-based Vallianz Holdings Ltd to explore business opportunities in Malaysia and the Middle East.
Acting chief executive officer Abdul Rahim Awang said in order to secure more jobs and reduce its debts, BOP
need to cast a wider net from its current Malaysian operations and venture into other markets.
"We are excited on future prospects of this alliance as it is a strategic springboard for us to penetrate beyond Malaysia.
"Vallianz’s strong foothold in the Middle East opens up new opportunities for us to expand our reach into new markets while utilising our competencies and assets. The alliance also provides us access to various other assets that will enable us to bid more competitively," he told the media in a briefing here today.
Looking ahead, Abdul Rahim said BOP will continue to pursue similar strategic alliances in addition to tendering for more jobs.
The company is also in the midst of formulating a restructuring scheme to manage the Group’s debt.
He said successful completion of the debt restructuring exercise will put BOP on a firmer financial footing while relieving cash flow for the short to medium term.
"With these recent developments, we believe we are on the right track in turning around our performance as we consolidate the Group while strengthening our core businesses," he said.
Vallianz is 57.67 per cent-owned by Rawabi Holding Company Ltd, a Saudi company established in 1980 and headquartered in Al-Khobar (Eastern Province), Kingdom of Saudi Arabia.
Rawabi is a regional provider of products and services with its core focus on the O&G industry, specifically in the drilling and related oilfield services.
It is also involved in the engineering and construction industry, owning and operating several manufacturing facilities.
The company also undertakes the task of growing regional telecommunications and IT sector with international partners from 20 countries and represent for over 100 prominent worldwide companies.
Listed on the Catalist Board of the Singapore Exchange, Vallianz is an established provider of offshore support vessels and integrated offshore marine solutions to the O&G industry.
Headquartered in Singapore, Vallianz serves oil majors, and national oil companies worldwide, and focuses on supporting customers’ offshore oil and gas exploration and production operations.
Vallianz owns and operates a young fleet of 76 offshore support vessels and covers markets in the Middle East, Asia Pacific and Latin America.
BOP is currently the maintenance, construction and modification (MCM) contractor for five production sharing contractors (PSC), namely Enquest Petroleum Production Malaysia Ltd, IPC Malaysia BV, Sapura Exploration and Production (PM) Inc, Hess Exploration and Production Malaysia BV and Petrofac Ltd.
Having secured these contracts in 2018 and 2019, the work periods are for 5 years until 2023 and will positively contribute to BOP’s financial performance during the tenure of contracts.
In addition, BOP is also carrying out repair and maintenance works for the Sabah-Sarawak Gas Pipeline.