Announcements


Date : 14 January 2016

OTHERS SAPURAKENCANA PETROLEUM BERHAD - AWARD OF NEW CONTRACTS AND CONTRACT UPDATES

SAPURAKENCANA PETROLEUM BERHAD

Type Announcement
Subject OTHERS
Description
SAPURAKENCANA PETROLEUM BERHAD
- AWARD OF NEW CONTRACTS AND CONTRACT UPDATES

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 USD117 million (approximately RM503 million, based on USD/MYR exchange rate of USD1: RM4.3).
 
Details of each of these contracts are as summarised below:


ENGINEERING AND CONSTRUCTION - MALAYSIA

Award of Provision of Hook Up & Commissioning Works for KNPG-B Phase II, Kinabalu Non-associated Gas (NAG) Development Project by THHE Fabricators Sdn. Bhd.

SapuraKencana HL Sdn Bhd has been awarded a contract for the Provision of Hook Up & Commissioning Works for KNPG-B Phase II, Kinabalu Non Associated Gas (NAG) Development Project by THHE Fabricators Sdn. Bhd. This involves the provision of supervision, manpower, equipment and marine spread to carry out the hook up and commissioning of a Compression System module and High Pressure High Temperature (HPHT) facilities on the KNPG-B Central Processing Platform.

The contract is for a period of approximately eight months and works are expected to commence in the first quarter of 2016.


ENGINEERING AND CONSTRUCTION – INTERNATIONAL

Award of Contract for the Provision of Engineering, Procurement and Construction (EPC) of the Subsea Isolation Value (SSIV) Systems by Hess Exploration & Production Malaysia B.V.

SapuraKencana Technology Sdn Bhd (formerly known as Sapura Energy Sdn Bhd) has been awarded a contract by Hess Exploration & Production Malaysia B.V. for the provision of Engineering, Procurement and Construction of the Subsea Isolation Valve (“SSIV”) Systems at Block PM302, North Malay Basin.

The scope of work under the contract includes the complete responsibility for carrying out and completing the work for SSIV Skids, Subsea Umbilical and Flying Lead, Hydraulic Power Unit (“HPU”), Topside Umbilical Termination Unit (“TUTU”), Umbilical Termination Assembly (“UTA”) and the supporting details.

The contract is for a period of approximately 18 months. It has commenced and is expected to complete around the first quarter of 2017.


DRILLING

Update on Sarawak Shell Berhad / Sabah Shell Petroleum Co. Ltd Contract for the Provision of Semi-Tender Assist Drilling Rig "SKD Esperanza"

SapuraKencana Drilling Tioman Sdn. Bhd. has been awarded a contract from Sarawak Shell Berhad (“SSB”)/ Sabah Shell Petroleum Co. Ltd (“SSPC”) for the provision of its Semi Tender Assist Drilling Rig “SKD Esperanza”.

The contract is for the nominal term of 18 months with options to extend for up to a further 18 months.


Update on Contract for the Provision of Tender Assist Drilling Rig "SKD T20"

Reference is made to the Company’s previous announcement, dated 15 May 2014, for SapuraKencana Drilling Holdings Ltd’s Tender Assist Drilling Rig SKD T20 (“SKD T20”) offshore Côte d'Ivoire.

The contract is now expected to be completed in June of 2016, adding to the original contract term. Additionally, there is the option to extend the contract by an 5 additional wells, which if exercised, will keep the SKD T20 on contract to 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 14 January, 2016.






Announcement Info

Company Name SAPURAKENCANA PETROLEUM BERHAD
Stock Name SKPETRO
Date Announced 14 Jan 2016
Category General Announcement for PLC
Reference Number GA1-14012016-00039



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