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 wholly-owned subsidiary, Sapura Fabrication Sdn Bhd (formerly known as SapuraKencana HL Sdn Bhd)  has been awarded a contract from Mubadala Petroleum (MDC Oil & Gas (SK 320) Ltd) to undertake engineering, procurement, construction, installation and commissioning (EPCIC) works for the Pegaga Development Project (“Contract”).

INFORMATION ON THE CONTRACT

The Contract scope of work comprises of engineering, procurement, construction, installation and commissioning of an offshore integrated central gas processing platform (ICPP) facility in Block SK320, offshore waters of Sarawak, Malaysia. The works are expected to be completed by third quarter of 2021.

FINANCIAL EFFECTS

The Contract announced herein will have no effect on the issued capital of the Company and is expected to contribute positively towards the earnings of Sapura Energy Group for the financial year ending 31 January 2019 and the financial periods thereafter within the duration of the Contract.

RISK FACTORS

Risk factors affecting the Contract including 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 Contract herein.

DIRECTORS’ STATEMENT

The Board is of the opinion that the acceptance of the Contract is in the best interest of the Company.

The announcement is dated 21 March 2018.