The Board of Directors of SapuraKencana Petroleum Berhad (“SapuraKencana” or “Company”) (“Board”) is pleased to announce that its wholly-owned subsidiary company, SapuraKencana TL Offshore Sdn Bhd (“SKTLO”), has been awarded a contract with a value of approximately USD 125.9 million (approximately RM 510 million, based on USD/MYR exchange rate of USD1: RM4.06).
INFORMATION ON THE CONTRACT
The contract is for the Engineering, Procurement, Construction and Installation (“EPCI”) of offshore pipelines and fibre optic cables for the Trans Anatolian Natural Gas Pipeline (TANAP) (“Contract”) from TANAP Do?algaz ?letim A.S.
The Contract scope of work comprises the design and engineering, procurement of materials, management, transportation, construction, installation, and testing and pre-commissioning of offshore pipelines and fibre optic cables, including but not limited to all temporary and permanent works for the installation of two 36” offshore pipelines approximately 35km in total length, two 48-core and two 192-core offshore fibre optic cables running parallel to the offshore pipelines, and other associated works relating to the Contract.
The work location is at the Dardanelles Strait in the Sea of Marmara. The Project is scheduled to commence in the third quarter of 2016 and ends in third quarter of 2018.
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 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 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 28 July, 2016.