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 USD 97.4 million (approximately RM 433.6 million, based on USD/MYR exchange rate of USD1: RM4.45).

Details of each of these contracts are as summarised below:

ENGINEERING AND CONSTRUCTION

Award of Umbrella Contract for the Pan Malaysia Transportation and Installation of Offshore Facilities by Petroliam Nasional Berhad (“PETRONAS”)

SapuraKencana TL Offshore Sdn. Bhd. (“SKTLO”) has been awarded an umbrella contract by PETRONAS for the provision of Pan Malaysia Transportation and Installation of Offshore Facilities (“Umbrella Contract”). The work consists of transportation and installation of platform, structures and pipelines and its associated works.

The Contract is for a duration of one year from 2017-2018.

Award of Provision of Engineering, Decommissioning, Procurement, Construction, Installation and Commissioning for Sepat Mobile Offshore Production Unit Stabilization and Repair Works (Package A) by Petronas Carigali Sdn. Bhd. (“PCSB”)

SKTLO has been awarded a contract by PCSB for the provision of Engineering, Decommissioning, Procurement, Construction, Installation and Commissioning for Sepat Mobile Offshore Production Unit Stabilization and Repair Works.

The Contract is for a duration of approximately 5 months.

Award of Provision of Procurement, Construction and Commissioning (PCC) of Full Well Stream (FWS) Air Cooler Module on Central Processing Platform (CPP) NC3CP-A by PCSB

SapuraKencana HL Sdn. Bhd. (“SKHL”) has been awarded a contract by PCSB for the provision of procurement, construction and commissioning (PCC) of Full Well Stream (FWS) Air Cooler Module on CPP.

The Contract is for a duration of 33 months.

Award of Provision of Engineering, Preparation, Removal and Disposal (EPRD) for Dana and D30 Facilities Decommissioning Project by PCPP Operating Company Sdn. Bhd. (“PCPP”)

SKHL has been awarded a contract by PCPP for the provision of engineering, preparation, removal and disposal (EPRD) for Dana and D30 facilities decommissioning project.

The Contract is for a duration of approximately 9 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 2018 and, for contracts that extend beyond 31 January 2018, 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 2 March 2017.