Barakah Offshore, the debt laden Malaysia oil and gas services company, will explore oil and gas opportunities in the Middle East in an alliance with the Saudi Arabia-owned Vallianz. The Malaysian company will offer engineering and operational capabilities in oil and gas services to support Valianz’s current and future projects.
The two companies signed a memorandum of understanding to jointly offer oil and gas services in Malaysia and the Middle East through a strategic alliance. The services offered by Barakah includes feasibility studies, technical consultation, and front-end engineering design and project engineering services. The scope of the collaboration also includes future tender agreements for offshore projects that are suitable to both Barakah and Vallianz.
“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,” Barakah’s acting CEO Abdul Rahim told the Malaysian media in a statement.
The alliance with the Saudi Arabian Rawabi Holding Company-owned Vallianz is part of the restructuring announced by the company recently. The company’s CEO Nik Hamdan had resigned last week as part of the restructuring. The strategic alliance is supposed to be one of the first in a series of alliances that the Malaysian oil and gas services firm is seeking to reduce its debt load.
Barakah’s debts add up to RM 335.60 million. Nik Hamdan, the company’s largest shareholder still owns close to a third of the company after reducing his stake in it in the recent weeks.