Barakah Offshore Petroleum Bhd has announced that it will explore alternative options for the disposal of its Kota Laksamana 101 (KL101) pipelay and accommodation barge after the agreement to auction the vessel has lapsed.
The company, which had set a minimum going price of US$11.4 million (RM53.9 million) for the 12-year-old vessel, cited the need for flexibility in exploring potential offers or opportunities.
Barakah Offshore will decide on the final disposal mode, either through direct disposal or auction, after obtaining shareholders' approval.
The decision will consider prevailing market conditions and KL101 barge asking prices at the material time.
The move comes after four proposals from interested buyers failed to materialise, and the disposal offers a chance to divest an asset not generating revenue or profits.
Despite recent profitability, Barakah Offshore is currently under Practice Note 17 due to negative equity and retained losses.
The company will assess market conditions and shareholder approval before finalising its disposal strategy.
As of the latest trading activity, Barakah Offshore's shares were last traded at 4 sen, resulting in a market capitalisation of RM40.1 million.