Petronas suspends Barakah Offshore Petroleum Berhad (7251:KL) unit’s licence for three years

Petronas suspends Barakah Offshore Petroleum Berhad (7251:KL) unit’s licence for three years

Petronas suspends Barakah Offshore Petroleum Berhad (7251:KL) unit’s licence for three years

Petroliam Nasional Bhd has suspended its licence issued to Barakah Offshore Petroleum Bhd’s unit over the non-performance of a contract.

In a statement to Bursa Malaysia on Tuesday, Bakarah said its unit PBJV Group Sdn Bhd (PBJV) received a notification of suspension of the licence from the national oil company.

“The letter from Petronas indicated that there was an adverse report from Petronas Carigali Sdn Bhd (PCSB) pertaining to the non-performance of PBJV in relation to the contract relating to provision of underwater services for PCSB. 

“Resulting from that, Petronas has decided to suspend PBJV’s licence for a period of three years with effect from the date of the letter,” it said.

Barakah said following the suspension, Petronas including its subsidiaries and any petroleum arrangement contractors (PACs) will not award any new contract to PBJV during the suspension period. 

“PBJV will not be allowed to bid for new projects undertaken by Petronas including its subsidiaries and any PACs during the suspension period.

“Nevertheless PBJV is still allowed to continue and complete its existing and on-going contracts with Petronas including its subsidiaries and PACs in accordance to the term and conditions of the respective existing and on-going contracts,” it said.

Bakarah said it would seek clarification from Petronas and appeal against the suspension.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 0.08.

The projected lower bound is: 0.04.

The projected closing price is: 0.06.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 3 black candles for a net of 1 white candles. During the past 50 bars, there have been 14 white candles and 16 black candles for a net of 2 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 30.0000. This is not an overbought or oversold reading. The last signal was a sell 7 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.50. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 26 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 383.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 21 period(s) ago.

Rex Takasugi – TD Profile

BARAKAH OFFSHORE closed up 0.005 at 0.060. Volume was 549% above average (trending) and Bollinger Bands were 66% narrower than normal.

Open High Low Close Volume___
0.075 0.080 0.060 0.060 145,542,800

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period     50-period     200-period
Close: 0.05 0.07 0.09
Volatility: 150 206 168
Volume: 24,132,730 20,265,722 17,138,490

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

BARAKAH OFFSHORE gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
BARAKAH OFFSHORE is currently 30.0% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect very strong flows of volume into BARA.KL (bullish). Our trend forecasting oscillators are currently bullish on BARA.KL and have had this outlook for the last 6 periods.

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