Malaysian oil and gas heavyweight Barakah Offshore Petroleum has signed an agreement with Singapore-based offshore services provider Vallianz – 57.67% of which is owned by Saudi Arabia's Rawabi – in an effort to expand in the Middle East.
Under their recently signed memorandum of understanding, Barakah will offer its engineering and operational capabilities to support existing and future projects by Vallianz.
Services covered under the contract pertain to technical consultation, feasibility studies, front-end engineering design, and project engineering, as well as future “co-tender arrangements for offshore projects which are deemed suitable by both parties”.
By joining forces, a joint statement read, both firms will be able to “leverage each other’s strengths to expand their scope of services, technical capabilities, and geographical reach” along the oil and gas value chain.
Vallianz owns and operates a fleet of 76 offshore support vessels and covers markets in the Middle East, Asia Pacific, and Latin America.
Group chief executive officer of Barakah, Eng Abdul Rahim Awang, said Vallianz’s “strong foothold in the Middle East opens up new opportunities” for the company to expand its reach into new markets.
“The alliance also provides us access to various other assets that will enable us to bid more competitively,” he added.
Barakah is currently the maintenance, construction, and modification contractor for five production sharing firms, including Enquest Petroleum Production Malaysia, IPC Malaysia, Sapura Exploration and Production, Hess Exploration and Production Malaysia, and Petrofac.
Barakah is in midst of a restructuring scheme, with debts as of December 2018 valued at $298.3m (RM335.6m), as reported by Malaysia-based news outlet The Star.