INTRODUCTION

The Board of Directors of SapuraKencana Petroleum Berhad (“SapuraKencana” or “Company”) (“Board”) is pleased to announce that its wholly-owned subsidiary company, SapuraKencana Mexicana S.A.P.I. de C.V., has been awarded contract with a value of approximately USD 113 million (approximately RM 461 million, based on USD/MYR exchange rate of USD1: RM4.09).
 

INFORMATION ON THE CONTRACT

The contract is for the Procurement and Construction of a 36” X 18 KM Sour Gas Pipeline (KMZ – 76) from Platform E – KU – A2 to Platform CA – AJ – 1(J4)  (“Contract”) in Ciudad del Carmen, Campeche, Mexico by Pemex Exploración y Producción.   

The Contract scope of work comprises of transportation and installation of pipelines, crossings, top side modifications and subsea works, including procurement and project management (“Works”). Works are scheduled to commence in July 2016 until March 2017.

FINANCIAL EFFECTS

The Contract announced herein will have no effect on the issued and paid-up share capital of the Company and is expected to contribute positively towards the earnings of SapuraKencana Group principally for the financial year ending 31 January 2017 and, the financial period thereafter during its respective contract period.

RISK FACTORS
    
Risk factors affecting the Contract 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 of the Contract herein.

DIRECTORS’ STATEMENT

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

This announcement is dated 25 July, 2016.