KUCHING: Dayang Enterprise Sdn Bhd (DESB) has won two contracts for the provision of integrated hook-up and commissioning (i-HUC) services for Petronas Carigali Sdn Bhd (PCSB).

The contracts are for Package B:SBA and Package D:SKO.

The duration of the contracts are four years, effective January 1, 2020 and will expire on December 31, 2023, said Dayang Enterprise Holdings Bhd (Dayang), which fully owns DESB, in a filing with Bursa Malaysia.

The value of the contracts has not been disclosed.

“The contracts will have no effect on the issued and paid-up capital of the company and is expected to contribute positively to the earnings of Dayang over the duration of the contracts.

“Risk factors affecting the award include execution risks,such as availability of skilled manpower and materials,changes in prices of materials, changes in political, economic and regulatory conditions.

“Throughout the years, DESB has established its track record and expertise to undertake these projects. Not withstanding this, DESB shall ensure strict compliance to the safety and operational procedures in the execution of contract requirements,” said Dayang.

Meanwhile, Petra Energy Bhd said its indirect wholly-owned subsidiary Petra Marine Sdn Bhd (PMSB) has agreed to dispose of one unit of marine vessel — Petra Lyra — for US$6 million.

PMSB has entered into a Barecon 2017 Standard Bareboat Charter Party (agreement) with Star Chance Limited (SCL) for the vessel disposal only by way of providing finance lease to SCL for 36 months.

PMSB will give an additional 90 days free time after delivery of the vessel to carry out dry docking, maintenance and certification.

“On expiration of the charter period as stated in the agreement with full instalment payment received, the ownership of the vessel will be transferred to SCL and PMSB will cease to be the registered owner of the vessel,” Petra Energy told Bursa Malaysia.

Petra Lyra is of an accommodation workbarge (steel) having a gross tonnage of 10,413 tonnes certified under Classification Society of American Bureau of Shipping. The vessel’s original purchase price in December 2013 was US$14.1 million.

Miri-based PMSB is principally involved in holding the ownership and supplying of vessels while Seychelles-based SCL’s core business is in vessel owning and chartering that service the oil and gas industry.

Petra Energy said the disposal of the vessel is timely as it allows it to monetise non-performing asset within the group and crystalise the vessel’s value at a reasonable price.

This, explained the company, would improve the group’s cash flow position for working capital, potential investment and future business expansion plan.