INTRODUCTION

The Board of Directors of Sapura Energy Berhad ("Sapura Energy" or the “Company") (“Board”) is pleased to announce that its wholly-owned subsidiaries have been awarded contracts with a combined value of approximately RM1.8 billion.

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

For Engineering & Construction:

Malaysia

1.      Provision of Engineering, Procurement and Construction (EpC) for SK408E Gorek Development and F6 Brownfield Integrated Module (F6 BIM) Project by Sarawak Shell Berhad

        Sapura Fabrication Sdn. Bhd. has been awarded a contract by Sarawak Shell Berhad for the provision of Engineering, Procurement and Construction (EpC) for SK408E Gorek Development and F6 Brownfield Integrated Module (F6 BIM) Project (“Contract”).

       The Contract scope of work comprises engineering, procurement and construction of the following:

       (a)       Gorek Wellhead Platform (WHP)

                  The Gorek WHP shall be installed on a conventional fixed four (4) legged jacket via one (1) skirt pile sleeve at each corner of the jacket leg in a water depth of 88 meters.  The topside is an unmanned satellite drilling/riser platform which consists of four (4) well slots. The topside comprises three (3) deck level and a vent boom.

       (b)       F6 Brownfield Integrated Module (BIM)

                 The host tie-in facility will be the F6 Processing Complex which is located 179 kilometers north-northwest of Bintulu. The new Brownfield Integrated Module (BIM) on the F6 processing complex will contain new equipment e.g. inlet separator, tilted plate coalescer (TPC), hydroclyone, gas and condensate allocation meterings, and pig receivers.

       The works are expected to be completed by Q3 2019.

2.     Provision of Engineering, Procurement and Construction (EpC) for SK408 Larak and Bakong Development Project by Sapura Exploration and Production (Sarawak) Inc.

       Sapura Fabrication Sdn. Bhd. has been awarded a contract by Sapura Exploration and Production (Sarawak) Inc. for the Package B and Package C - Provision of Engineering, Procurement and Construction (EpC) for SK408 Larak and Bakong Development Project (“Contract”).

       The Contract scope of work comprises engineering, procurement and construction of the following:

       (a)      Package B – Larak Wellhaed Platform (WHP)

       The Larak WHP shall be installed on a fixed four (4) legged jacket via pile through leg in a water depth of 81 meters. The wellhead area shall support three (3) well slots of  which two (2) will be utilized as production wells and the remainder one (1) slot as spare.

      (b)       Package C – Bakong Wellhead Platform (WHP)

      The Bakong WHP shall be installed on a fixed four (4) legged jacket via pile through leg in a water depth of 85 meters. The wellhead area shall support three (3) well slots of which two (2) will be utilized as production wells and the remainder one (1) slot as spare. Future tie-in provision is provided on production header, vent and drain header to cater for future well tie-ins.

     The works are expected to be completed by Q2 2019.

India

1.   Provision to undertake the Subsea Wells and Pipeline Replacement Project V (SSPRP V) for Oil and Natural Gas Corporation Limited 

      Sapura Fabrication Sdn. Bhd. has been awarded a contract to undertake the Subsea Wells and Pipeline Replacement Project V (SSPRP V) (“Contract”) for Oil and Natural Gas Corporation Limited (ONGC).

      The Contract scope of work comprises the following:

1. Laying of 25 segments of subsea pipelines of total length 114.83 kilometers of various sizes including tie-ins;
2. Laying of 11 free issue umbilical of total length 57.91 kilometers for connecting subsea wells to respective host platforms for control of subsea wells; and
3. Topside modification at 24 platforms (including installation of free issue items) with an additional four minor piping works.

       The works are expected to be completed by Q4 2019.

2.    Provision of Supply of Equipment’s & Materials for Berth A2 and Modification of Berth D (Additional Mooring Dolphin) at Marine Terminal, Jamnagar for Sikka Ports & Terminals Limited

       Sapura Offshore Sdn. Bhd. has been awarded a contract to undertake the supply of equipment’s and materials for Berth A2 and modification of Berth D (additional mooring dolphin) for Sikka Ports & Terminals Limited (formerly known as Reliance Ports and Terminals Limited). 

       The scope of work of the award comprises residual engineering and supply of equipment and materials for Berth A2 and modification of Berth D (additional Mooring Dolphin) at  Marine Terminal, Jamnagar, state of Gujarat, India.

       The works are expected to be completed by Q1 2020.

3.    Provision of Construction of Berth A2 and Modification of Berth D (Additional Mooring Dolphin) At Marine Terminal, Jamnagar for Sikka Ports & Terminals Limited

      Sapura Engineering & Construction (India) Private Limited has been awarded a contract to undertake the Construction of Berth A2 and Modification of Berth D (additional Mooring Dolphin) (“Contract”) for Sikka Ports & Terminals Limited (formerly known as Reliance Ports and Terminals Limited).

      The Contract scope of work comprises construction, erection, installation, testing, pre-commissioning and commissioning support for Berth A2 and modifications of Berth D (additional mooring dolphin) at Marine Terminal, Jamnagar, state of Gujarat, India.

      The works are expected to be completed by Q2 2020.

Mexico

Provision of Engineering, Procurement, Construction, Installation and Pre-commissioning of 30" Ø X 20 kilometers gas oil pipeline from PP-Ayatsil-B Platform To E-KU-A1 Platfrom (Ayatsil Line 16) in the Gulf of Mexico for PEMEX Exploration and Production

SapuraKencana Mexicana, S.A.P.I. de C.V. has been awarded a contract to undertake engineering, procurement, construction, installation and pre-commissioning of 30’ Ø x 20 kilometers approximately, gas oil pipeline from PP-Ayatsil-B Platform to E-KU-A1 Platform (Ayatsil Line 16) to be installed in the Gulf of Mexico (“Contract”) for PEMEX Exploration and Production.

The works are expected to be completed by Q1 2019.

Australia

Provision of Riserless Lightwell Intervention Services for Montara Subsea Wells by PTTEP Australasia (Ashmore Cartier) Pty Ltd.

Normand Sapura Pty Ltd has received an award for the provision of Riserless Lightwell Intervention Services for Montara Subsea Wells (“Contract”) by PTTEP Australasia (Ashmore Cartier) Pty Ltd.

The Contract involves the provision of lightwell intervention services for three (3) wells that are located in Montara development area, Timor Sea. The Contract will be executed by its DP2 Subsea Construction Vessel, Sapura Constructor, and in-house Lightwell Intervention Systems including Intervention Compensation System (ICS) and Subsea Intervention Device (SID).

The works are expected to be completed by Q4 2018.

For Drilling:

1.     Provision of a Semi-Submersible Tender Assist Drilling Rig “Sapura Berani” for PETRONAS Carigali Sdn. Bhd.

        Sapura Drilling Asia Sdn. Bhd. has been awarded a contract for the provision of a semi-submersible tender assisted drilling rig, “Sapura Berani”, and drilling services (“Contract”) for PETRONAS Carigali Sdn. Bhd..

        The Contract scope of work comprises the provision of a semi-submersible tender assisted drilling rig for a firm three (3) wells with an option to extend for an additional 2 + 3 + 2  wells for drilling in the Malaysian water.

       The work related to the three (3) wells is expected to commence in Q3 2018.

2.    Extension of Contract for Semi-Submersible Tender Assist Drilling Rig “Sapura Esperanza” with Sarawak Shell Berhad / Sabah Shell Petroleum Company Limited and EQ Petroleum Malaysia Limited

       Sapura Drilling Asia Sdn. Bhd. has accepted an extension to its contract (“Contract Extension”) with Sarawak Shell Berhad / Sabah Shell Petroleum Company Limited (“Shell”) for the provision of its Semi-Submersible Tender Assist Drilling Rig “Sapura Esperanza” combined with an additional assignment by Shell to EQ Petroleum Production Malaysia Limited (“EnQuest”). 

      The Contract Extension entails the drilling of firm three (3) wells with a further optional three (3) wells extension. The firm three (3) wells, two (2) wells for EnQuest and one (1) well for Shell, will be for their respective drilling campaigns in offshore Sarawak and Terengganu.

      The work related to the three (3) wells is expected to be completed by Q3 2018.

FINANCIAL EFFECTS

The Contracts announced herein will have no effect on the issued 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 2019 and, for Contracts that extend beyond 31 January 2019, 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 21 June 2018.