The Board of Directors of SapuraKencana Petroleum Berhad (“SapuraKencana” or “Company”) (“Board”) is pleased to announce that wholly-owned subsidiary companies and jointly controlled entities within the SapuraKencana Group have been awarded contracts and contract extensions with a combined value of approximately USD382 million (approximately RM1,583 million), based on USD/MYR exchange rate of USD1: RM4.15).
Details of each of these contracts are as summarised below:
ENGINEERING AND CONSTRUCTION – INTERNATIONAL
Award of Contract for the Provision of Comprehensive Maintenance by Murphy Sarawak Oil Company Ltd
SapuraKencana GE Oil & Gas Services Sdn Bhd, a joint venture between SapuraKencana Services Shd Bhd and GE Power Systems (Malaysia Sdn Bhd), has been awarded by Murphy Sarawak Oil Company Ltd. a contract for comprehensive maintenance of GE-supplied turbomachinery equipment under a long-term service agreement. This comprises the provision of maintenance services for GE-supplied gas turbines and centrifugal compressors.
The contract is for a period of approximately 10 years.
Award of Contract for the Provision of Turbomachinery Maintenance Services by Petronas Floating LNG1 (L) Ltd. Facilities (“PFLNG1 and PFLNG2”)
SapuraKencana GE Oil & Gas Services Sdn Bhd, a joint venture between SapuraKencana Services Sdn Bhd and GE Power Systems (Malaysia Sdn Bhd), has been awarded by Petronas Floating LNG1 (L) Ltd (“PFLNG”) a contract for comprehensive maintenance of GE-supplied turbomachinery equipment under a long-term service agreement. This comprises the provision of maintenance services for GE-supplied aeroderivative gas turbines, centrifugal compressors and electric generators and electric motors.
The contract is for a period of 10 years with an option to extend for an additional period of five years.
Extension of Contract for Semi-Submersible Tender Assist Drilling Rig SKD Jaya with BP Trinidad & Tobago LLC
SapuraKencana Drilling Jaya Ltd, a wholly-owned subsidiary, has been granted an extension to its contract with BP Trinidad & Tobago LLC. (“BP”) for the provision of its Semi-submersible Tender Assist Drilling Rig “SKD Jaya” (“SKD Jaya”).
BP has extended the use of the SKD Jaya for its development drilling campaign offshore Trinidad and Tobago for an additional one well and is expected to remain on contract until April 2016.
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 2017 and, for contracts that extend beyond 31 January 2017, the financial period(s) thereafter during their respective contract periods.
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.
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 4 February 2016.