INTRODUCTION

The Board of Directors of Sapura Energy Berhad (formerly known as SapuraKencana Petroleum Berhad) ("Sapura Energy" or the “Company") (“Board”) is pleased to announce that its direct and indirect wholly-owned subsidiaries have been awarded contracts with a combined value of approximately RM1.47 billion.

Details of each of these contracts (“Contracts”) are as summarised below :-

Malaysia

1. Pan Malaysia Transportation & Installation of Offshore Facilities for PETRONAS Carigali Sdn. Bhd. and Sarawak Shell Berhad

Sapura Offshore Sdn. Bhd. (formerly known as SapuraKencana TL Offshore Sdn. Bhd.) has been awarded contracts to undertake the 2018 Scope of Work in relation to the Pan Malaysia Transportation & Installation of Offshore Facilities for PETRONAS Carigali Sdn. Bhd. and Sarawak Shell Berhad.  The work comprises transportation and installation of offshore facilities including platform, structures and pipelines and its associated works.

The work will be executed throughout 2018.

2. Provision of Maintenance, Construction and Modification (MCM) Services for PETRONAS Carigali Sdn. Bhd. (Package A – Offshore) – Sarawak Gas

Sapura Fabrication Sdn. Bhd. (formerly known as SapuraKencana HL Sdn. Bhd.) and its partner, Borneo Seaoffshore Engineering Sdn. Bhd. have been awarded a contract to undertake the Provision of Maintenance, Construction and Modification (“MCM”) Services (Package A - Offshore) – Sarawak Gas  (“Contract”) for PETRONAS Carigali Sdn. Bhd. (“PCSB”).

The scope of work shall include any or all other work and services which is generally related to topside structural maintenance, hook up and commissioning, and facilities improvement program.  The Contract is a call-out contract where works will be carried out according to work orders issued by PCSB.

The duration of the Contract will be for a primary period of five (5) years expiring in September 2022 with one (1) year extension option. 

3.  Provision of Hook-Up, Commissioning and Offshore Construction Services by Repsol Oil & Gas Malaysia Limited

Sapura Fabrication Sdn. Bhd. (formerly known as SapuraKencana HL Sdn. Bhd.) has been awarded a contract to undertake the Provision of Hook-Up, Commissioning and Offshore Construction Services (“Contract”) by Repsol Oil & Gas Malaysia Limited.

The work comprises onshore preparation and handling, onshore pre-fabrication works, offshore installation and hook-up, inspection, testing and pre-commissioning of structural members and supports, piping, instrument and electrical equipment on existing and new production and processing platforms and facilities. The Contract is a call-out contract where works will be carried out according to work orders based on agreed unit rates and prices.

The Contract duration is for a primary period of two (2) years expiring in September 2019 with one (1) year extension option.

4.  Provision of Mechanical Works for the Flexi High Density Polyethylene (HDPE) Plant for the Refinery and Petrochemical Integrated Development (“RAPID”) Project - Unit 3215 by TecnimontHQC Sdn. Bhd.

Sapura Fabrication Sdn. Bhd. (formerly known as SapuraKencana HL Sdn. Bhd.) has been awarded a contract for the provision of Mechanical Works for the Flexi High Density Polyethylene (HDPE) Plant for Rapid Project - Unit 3215 by TecnimontHQC Sdn. Bhd. The work consists of the provision of project management, supervision, equipment, tools and labour for the Mechanical Work Package.

The work is expected to be completed by March 2019.

Brazil

1. Provision of (1) Engineering, Procurement and Construction related to Pipeline for UTE Porto de Sergipe 1 Combined Cycle Power Plant, (2) Transportation and Installation of the Offshore Floating, Regasification and Storage Unit’s (“FSRU”) Mooring System, and (3) Hooking-up of the FSRU/Riser/Umbilical for Centrais Elétricas de Sergipe S.A. (“CELSE”)

Sapura Energy Do Brasil LTDA has been awarded a contract to undertake, (1) Engineering, Procurement and Construction related to Pipeline for UTE Porto de Sergipe 1 Combined Cycle Power Plant, (2) Transportation and Installation of the FSRU’s Mooring System and (3) Hooking-up of the FSRU/riser/umbilical by CELSE.

The work comprises of engineering design, procurement, construction, installation and pre-commissioning of the pipeline, transportation and installation of the Yoke and hook-up of FSRU/ risers/umbilical.

The work is expected to be completed by 31 December 2018.

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 Sapura Energy Group principally for the financial year ending 31 January 2018 and, for Contracts that extend beyond 31 January 2018, the financial period(s) thereafter within the duration of the Contracts and the extension periods if the extension options are exercised.

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 Group 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 15 November 2017.