The Board of Directors of SapuraKencana Petroleum Berhad ("SKPB") wishes to announce that its wholly-owned subsidiaries, Sapura Energy Ventures Sdn Bhd and Kencana Energy Sdn Bhd and their partner, Petrofac Energy Developments Sdn Bhd, have reached a mutual agreement with Petroliam Nasional Berhad ("PETRONAS") for the cessation of the Berantai Risk Service Contract ("RSC").
The Berantai RSC was signed on 31 January 2011 with PETRONAS and was the first RSC awarded by PETRONAS. It is for the development and production of petroleum from the Berantai field, located offshore Peninsular Malaysia. Participating interests in the Berantai RSC are held 25% by Sapura Energy Ventures Sdn Bhd, 25% by Kencana Energy Sdn Bhd and 50% by Petrofac Energy Developments Sdn Bhd.
With the cessation of the RSC, which will be effective on 30 September 2016, PETRONAS will reimburse all outstanding capital and operational expenditures to the Contractors by June 2017. As part of the arrangement, the ownership of Berantai FPSO will be transferred to PETRONAS.
None of the Directors and/or major shareholders of SKPB and/or persons connected with them have any interest, whether direct or indirect, in the cessation of the Berantai RSC.
This announcement is dated 11 July 2016.