INTRODUCTION

The Board of Directors of SapuraKencana Petroleum Berhad (“SapuraKencana” or “Company”) (“Board”) is pleased to announce that its wholly-owned subsidiaries have been awarded contracts with a combined value of approximately USD300 million (approximately RM1.34 billion, based on USD/MYR exchange rate of USD1: RM4.47).
 
Details of each of these contracts are as summarised below:

ENGINEERING AND CONSTRUCTION 

Award of Provision of Underwater Services by PETRONAS Carigali Sdn. Bhd.

SapuraKencana Subsea Services Sdn. Bhd. (formerly known as SapuraKencana Allied Marine Sdn. Bhd.)(“SKSS”) has been awarded a contract for the provision of underwater services for PETRONAS Carigali Sdn. Bhd. (“PCSB”).
The scope of work consists of underwater services together with vessels, air and saturation diving, remotely operated vehicle (ROV) and other related underwater services, including inspection, maintenance and repair to support PCSB’s underwater facilities located at the offshore waters of Peninsular Malaysia. 

The Contract is for a period of 2 years and the work is to be performed on a call-out basis.

Award of Provision of Soil Investigation Services by PCSB

SapuraKencana GeoSciences Sdn. Bhd. has been awarded a contract by PCSB for the provision of soil investigation services.
The work location is at both Peninsular Malaysia operation and Sarawak/Sabah operation area. The Contract is for a period of 1 year with an option to extend for a further 1-year period.

Award of Provision of Offshore Installation Work of CPP Jacket and Bridge for BARDEGG-2 and Baronia Enhanced Oil Recovery (EOR) Development Project by Hyundai Heavy Industries

SapuraKencana TL Offshore Sdn. Bhd. (“SKTLO”) has been awarded a contract by Hyundai Heavy Industries for the provision of offshore installation work of BNCPP-B jacket, foundation piles and bridge structure between BNCPP-B to BNG-B.

The work location is in East Malaysia and the contract is scheduled to commence in Q1 2017.

Award of Provision of Transportation and Installation of Pipeline, Substructure and Topside for Bunga Pakma Development Project by Repsol Oil & Gas Malaysia Limited

SKTLO has been awarded a contract by Repsol Oil & Gas Malaysia Limited (formerly known as Talisman Malaysia Limited) for the provision of transportation and installation of pipeline, substance and topside for Bunga Pakma Development Project. 
The project comprises of transportation and installation of Bunga Pakma, a wellhead riser platform which includes jacket, piles, topside, wet gas pipeline and subsea composite cable.

The Contract is for a period of 12 months.

DRILLING

Award of Provision of Tender Assist Drilling Rig “SKD Alliance” by Brunei Shell Petroleum Sdn. Bhd.

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

The Contract is scheduled to commence in April 2018 for a firm period of 5 years with options to extend for an additional 5 years.

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 and extension 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 9 January 2017.