Malaysian offshore service provider Barakah Offshore Petroleum is exploring sale options for its pipelay and accommodation barge Kota Laksamana 101 after the deal to auction the vessel has lapsed.
The Bursa Malaysia-listed firm had targeted at least $11.4m under the auction process for the unit delivered in 2012.
Barakah said earlier that the disposal “offers a chance to divest an asset not generating revenue or profits” as the vessel tied to a loan with the Export-Import Bank of Malaysia (EXIM Bank) had no ongoing contracts.
The move follows four failed proposals from interested buyers, and the company has over the past six months explored alternative avenues for the disposal of the vessel.
“In assessing its options, the company had decided to not renew the commissioning agreement for the time being to enable the company flexibility to explore any potential offers or opportunities that may arise prior to obtaining shareholders’ approval for the proposed disposal,” Barakah Offshore’s bourse filing said.
The company added that it will decide on the final mode of the disposal either via direct disposal or auction after obtaining shareholders’ approval.
“The company will consider, amongst others, the prevailing market conditions as well as the asking prices for the KL101 barge at the material time,” it added.
Despite recent profitability, Barakah Offshore is currently under Practice Note 17 due to negative equity and retained losses. The note issued by Bursa Malaysia relates to companies that are in financial distress.
