Barakah Offshore Petroleum Berhad announced that its unit had entered into a conditional memorandum of agreement with PT. Wintermar Rajawali Asia for the proposed disposal of the KL101 Barge to PT. WRA at a cash consideration of USD9.70 million (equivalent to approximately RM41.81 million)

The group said the proposed disposal presents an opportunity to dispose of a nonrevenue/profit generating asset. Despite the final Disposal Consideration of USD9.70 million is lower than the minimum disposal consideration approved by shareholders the final disposal consideration represents the only offer received by the Group after conducting an auction and a private tender.

Barakah said the disposal is also part of its cost cutting initiative to realise the value of the idle KL101 Barge. For the financial year ended June 2024, the Group recorded an additional impairment loss of RM16.1 million for the KL101 Barge based on the reassessed recoverable amount following the unsuccessful auction.