INTRODUCTION

The Board of Directors of SapuraKencana Petroleum Berhad (“SapuraKencana” or “Company”) (“Board”) is pleased to announce that wholly-owned subsidiary companies within the SapuraKencana Group have been awarded contracts and extensions with a combined value of approximately USD72 million (approximately RM300 million, based on USD/MYR exchange rate of USD1: RM4.2).
 
Details of each of these contracts are as summarised below:

ENGINEERING AND CONSTRUCTION - MALAYSIA

Award of Provision of Engineering, Procurement, Construction & Commissioning (“EPCC”) for Simultaneous Production and Drilling (“SIPROD”) on D35DP-B Contract by Roc Oil (Sarawak) Sdn Bhd 

SapuraKencana HL Sdn Bhd has been awarded a contract for the Provision of EPCC for SIPROD on D35DP-B Project by Roc Oil (Sarawak) Sdn Bhd (“Contract”). 
The works involve the preparation of SIPROD package on D35DP-B platform for a drilling campaign and subsequent well tie-in activities. 

The Contract is for a period of approximately four months and works are expected to commence in the fourth quarter of 2015 with expected completion by the first quarter of 2016.

ENGINEERING AND CONSTRUCTION – INTERNATIONAL

Award for Installation Works Under Additional Development of Vasai East Project

SapuraKencana TL Offshore Sdn Bhd (formerly known as TL Offshore Sdn Bhd) (“SKTLO”) has been awarded a subcontract from main contractor, L&T Hydrocarbon Engineering Limited (“LTHE”), for the Additional Development of the Vasai East Project in India.  SKTLO’s scope of work under the subcontract is for the installation of structures and pipelines and other subsea work at Vasai East (“Works”) which is located in the Arabian Sea approximately 78km offshore Mumbai.

The Works is expected to be completed in March 2016.

DRILLING 

Update on Foxtrot International LDC (“Foxtrot”) Contract for the Provision of SemiTender Assist Drilling Rig "SKD Alliance"

SapuraKencana Drilling Holdings Limited’s previously announced contract for its Semi-Tender Assist Drilling Rig "SKD Alliance" for Foxtrot International LDC ("Foxtrot") in Côte d'Ivoire is now expected to be completed in August 2016, adding an additional five months to the contract. 

Additionally, Foxtrot still retains the option to extend the contract by three additional wells, which if exercised, will keep the SKD Alliance on contract until the final quarter of 2016.

FINANCIAL EFFECTS
 
The contracts announced herein will have no effect on the issued and paid-up share capital of the Company and are expected to contribute positively towards the earnings of SapuraKencana Group principally for the financial year ending 31 January 2016 and, for contracts that extend beyond 31 January 2016, the financial period(s) thereafter during their respective contract periods.

RISK FACTORS
    
Risk factors affecting the contracts include execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions, and/or political, economic and regulatory conditions. Notwithstanding, the Company has established a successful track record undertaking similar projects.  

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders of the Company and/or persons connected with them have any direct or indirect interest in the award and extension of the contracts herein.

DIRECTORS’ STATEMENT

The Board is of the opinion that the acceptance of the contracts herein is in the best interest of the Company.

This announcement is dated 7 December 2015.