Announcements


Date : 30 September 2016

OTHERS SAPURAKENCANA PETROLEUM BERHAD AWARD OF CONTRACTS

SAPURAKENCANA PETROLEUM BERHAD

Type Announcement
Subject OTHERS
Description
SAPURAKENCANA PETROLEUM BERHAD
AWARD OF CONTRACTS

INTRODUCTION

The Board of Directors ("Board") of SapuraKencana Petroleum Berhad (“SapuraKencana” or “Company”) is pleased to announce that its wholly-owned subsidiary companies within the SapuraKencana Group have been awarded contracts with a combined value of USD215 million (approximately RM889 million, based on USD/MYR exchange rate of USD1: RM4.14).
 
Details of each of these contracts are as summarised below:

ENGINEERING AND CONSTRUCTION 

Award of Contract in relation to the B127 Cluster Pipeline RTR Project by Oil and Natural Gas Corporation Limited

A consortium of SapuraKencana TL Offshore Sdn. Bhd. and SapuraKencana HL Sdn. Bhd. has been awarded a contract by Oil and Natural Gas Corporation Limited (ONGC) in relation to the B127 Cluster Pipeline RTR Project.

The scope of work consists of engineering, procurement, construction, installation and commissioning of 11 pipeline systems and associated topside modifications in B127 and surrounding Mumbai High fields located off the west coast of India.

The Contract is for a period of 20 months.

Award of Contract for the Provision of Tender Assist Drilling Rig “SKD Pelaut” by Brunei Shell Petroleum Sdn. Bhd.

SapuraKencana Drilling Asia Limited has been awarded a contract by Brunei Shell Petroleum Sdn. Bhd. (“Brunei Shell Petroleum”) for the provision of its Tender Assist Drilling Rig “SKD Pelaut”.

The contract builds on the long term partnership between Brunei Shell Petroleum and SapuraKencana whereby Brunei Shell Petroleum will continue to use SKD Pelaut as a bespoke technical solution for its development drilling campaign offshore Brunei Darussalam. 

The contract is for a firm period of 2 years with options to extend for an additional 2 years.

Award of Contract for the Provision of Underwater Maintenance Services for Sepat MOPU by PETRONAS Carigali Sdn. Bhd.

SapuraKencana Subsea Services Sdn. Bhd. (formerly known as SapuraKencana Allied Marine Sdn. Bhd.) has been awarded a project by PETRONAS Carigali Sdn. Bhd. (“PCSB”) for the provision of underwater maintenance services for Sepat MOPU.

The scope of work consists of inspection, maintenance, repairs, drilling support and other work for PCSB’s underwater facilities to be executed in the water shore and offshore Peninsular Malaysia at 0-2000 meters water depth, with diver intervention at 0-300 meters water range at the Sepat MOPU Field. 

The Contract is for a period of approximately 2 months.

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 2017 and, for contracts that extend beyond 31 January 2017, 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 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 30 September, 2016.






Announcement Info

Company Name SAPURAKENCANA PETROLEUM BERHAD
Stock Name SKPETRO
Date Announced 30 Sep 2016
Category General Announcement for PLC
Reference Number GA1-30092016-00056



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