The Board of Directors of SapuraKencana Petroleum Berhad (“SapuraKencana Petroleum” or the “Company”) is pleased to announce the following gas discovery and Awards:

(A) SAPURAKENCANA ENERGY 
SapuraKencana Energy Sarawak Inc. (“SKE”), a wholly-owned subsidiary of SapuraKencana Petroleum has made another gas discovery from Bakong-1, the fifth and final well in its 2014 drilling campaign within the SK408 Production Sharing Contract (“PSC”) area, offshore Malaysia.
Bakong-1 is a significant discovery with a gross gas column in excess of 600 metres in the primary target reservoir within the Late Miocene Carbonates. This discovery augments the earlier announced four well discoveries made on 9 June 2014 and completes the five well drilling programme slated for this year as part of the SK408 work campaign. 
SKE is the operator with a 40% working interest with partners PETRONAS Carigali Sdn. Bhd. (30%) and Sarawak Shell Bhd. (30%) holding the remaining interest. SK408 Block is located in shallow waters approximately 120 kilometres offshore Sarawak covering an area of approximately 4,480 sq. km in the prolific Central Luconia Gas Province. 
(B) OFFSHORE CONSTRUCTION AND SUBSEA SERVICES DIVISION
(i) TL Offshore Sdn Bhd (“TLO”), a wholly-owned subsidiary of SapuraKencana Petroleum has been awarded:
(a) A Project for the Provision of Offshore Pipeline Construction for Nam Con Son 2 Gas Pipeline Project – Phase 1 (“Project”).
The Project comprises transportation and installation of 151 km offshore pipeline in Nam Con Son field and 19 km in Dai Hung field located at South West of Nam Con Son Basin, Vietnam, 260km from Vung Tau. Work will be performed over two campaigns in the third quarter of 2014 and  second quarter of 2015.
The Project is valued at approximately USD89 million.
(b) A subcontract from PTSC Offshore Services Joint Stock Company for the provision of installation work located in Block 16-1, Offshore Vietnam (“Subcontract”);
The Subcontract is for the installation of the Te Giac Trang Field H5 Wellhead Platform Jacket and Drilling Wellbay Module I.
The Subcontract is valued at approximately USD7.3 million.
(ii) SapuraAcergy (Australia) Pty Ltd, a wholly owned entity of SapuraAcergy Sdn Bhd, a joint venture company equally owned by SapuraKencana Petroleum and Subsea7 S.A had, on 19 August 2014, entered into a contract for the transportation and  installation of a compressor module and a condensate pump module onto the 'Yolla A' platform, which is located in Yolla Field, Bass Strait, Australia (“Works”) with Origin Energy Resources  Limited.
The engineering activities for the Works have commenced and the offshore installation campaign is scheduled to commence in the fourth quarter of 2014. The offshore work will be performed for an estimated duration of 8 days.
The contract is valued at approximately USD28 million.

FINANCIAL EFFECTS
The Awards will have no effect on the issued and paid-up share capital of SapuraKencana Petroleum and are expected to contribute positively towards the earnings of SapuraKencana Petroleum Group for the financial year ending 31 January 2015 and the financial periods thereafter during the contracts and Project period, respectively.
RISK FACTORS
Risk factors affecting the Awards are mainly operational in nature and include economic and regulatory conditions.  Notwithstanding, the SapuraKencana Petroleum Group has established a successful track record undertaking similar projects.
DIRECTORS AND MAJOR SHAREHOLDERS' INTEREST
None of the Directors and/or major shareholders of the Company and/or persons connected with them has any direct or indirect interest in the Awards.
DIRECTORS' STATEMENT
The Board of Directors of the Company is of the opinion that the acceptance of the Awards are in the best interest of the Company.
This announcement is dated 29 August 2014.