Barakah: O&G contractors still suffering low prices as oil majors still cautious

PETALING JAYA: Barakah Offshore Petroleum Bhd said charter rates for the oil & gas industry have not risen in tandem with the rise in oil prices and this could be a troubling trend as most oil majors are still very cautious.

“The contract opportunities has increased with the rise in oil price but then the rates to provide services is still very low. When there was a correction in oil prices, there was a major correction in service prices including vessel charter rates and also the services rates,” Barakah’s newly appointed Group CEO Abdul Rahim Awang said at a press briefing today.

“Despite oil prices having already recovered to US$70 per barrel, the rates we are seeing today remains at the 2015/2016 level when oil prices were at US$30 - US$40 per barrel. The reason for that is that there are not enough number of jobs. When everybody is hungry, people are throwing prices and the prices for services remain at a very low level,” Abdul Rahim added.