The Board of Directors of Sapura Energy Berhad (formerly known as SapuraKencana Petroleum Berhad) (“SEB” or “Company”) wishes to announce that on 17 October 2017 SEB and Subsea 7 S.A. have mutually agreed to discontinue the SapuraAcergy Joint Venture. As a consequence, SEB has now become the sole owner of Sapura 3000, a self-propelled, dynamically positioned heavy lift derrick and pipelay combination vessel.

Having full ownership of Sapura 3000 will further enhance the Group’s competitive positioning in the Engineering and Construction segment. Sapura 3000 has established a strong track record in executing heavy-lift, pipelay and decommissioning work for shallow and deepwater projects globally, including projects in Mexico, Japan, China, Australia and the Southeast Asia region.  Sapura 3000 also successfully executed Malaysia’s first two deepwater development projects for the Kikeh and Gumusut-Kakap fields.

The purchase of Sapura 3000 by the Group from the SapuraAcergy Joint Venture will contribute to the SapuraAcergy Joint Venture recognising a loss in the current financial year ending 31 January 2018. This transaction is not expected to have a material effect on the net assets of the Group.

None of the Directors and/or major shareholders of SEB and/or any person connected with them have any interest, direct or indirect, in the discontinuation of the SapuraAcergy Joint Venture.

This announcement is dated 17 October 2017.