Alam Maritim Resources Bhd has secured a RM29 million (approximately $7.13 million) contract from Vestigo Petroleum Sdn Bhd for subsea pipeline maintenance, the company announced in a regulatory filing on Thursday.

The marine transportation support services provider will be responsible for the free-span rectification of a 12-inch "full well stream" TNAG pipeline.

Slated for completion within six months of its commencement, the project covers a 60-kilometer stretch of infrastructure.

In the filing with Bursa Malaysia, Alam Maritim stated that the contract is expected to begin immediately. 

Free-span rectification is a critical subsea engineering process used to repair sections of a pipeline that have become suspended above the seabed due to erosion or current, which can lead to structural stress if left unaddressed.

The company expects the agreement to boost its financial performance in the coming year.

“The contract is expected to contribute positively to the earnings and net tangible assets of Alam Group for the financial year ending June 30, 2026,” the company said in its statement.

The board of directors noted that the execution of the contract is in the best interest of the company. Regarding corporate structure, Alam Maritim clarified that the deal will have no impact on its share capital or existing shareholding framework.

Addressing potential challenges, the company categorized the risks associated with the project as "normal operational risks." 

The firm intends to manage these through its established internal business controls and project management systems.

Alam Maritim has been a consistent player in the regional offshore support vessel and subsea services market, and this latest award reinforces its standing in the Malaysian oil and gas sector.