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 several contracts with a combined value of approximately RM1.75 billion.

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

Mexico

1.  Provision of Offshore Engineering, Procurement, Construction, Transportation and Installation (“EPCTI”) Contract for Hokchi Field Development in the Gulf of Mexico

Sapura Energy’s wholly owned subsidiary in Mexico has been awarded a contract from Hokchi Energy S.A. de C.V. to undertake engineering, procurement, construction, transportation and installation in the Hokchi Field Development in the Gulf of Mexico (“Contract”).

The Contract scope of work comprises of the offshore engineering, procurement, transportation, installation and pre-commissioning and commissioning which include a central wellhead platform called the Hokchi Central Platform, with minimum offshore processing connected to minimal offshore wellhead platform called the Hokchi Satellite Platform. Fluids from the wells will be combined into a single multiphase flowline connected to the onshore processing facility called the Hokchi Paraiso Facility in the Gulf of Mexico, with a water depth of approximately 40 meters.

The works are expected to be completed by end of 1Q 2020.

2.  Provision of Engineering, Procurement, Construction, Transportation and Installation (EPCTI) Contract for Offshore Block Area 1 in the Gulf of Mexico

Sapura Energy’s wholly owned subsidiary in Mexico has been awarded a contract from ENI Mexico S. de. R.L de. C.V to undertake engineering, procurement, construction, transportation and installation in the Offshore Block Area 1 in the Gulf of Mexico (“Contract”).

The Contract scope of work comprises of, engineering, transport, construction, installation and pre-commissioning of sealine and onshore pipeline and fiber optic cable and the transportation and installation of the Mizton wellhead platform in the Gulf of Mexico with a maximum installation water depth of approximately 40 meters.

The works are expected to be completed by end of 2Q 2019.

Malaysia

Provision of Pan Malaysia Underwater Services for Petroleum Arrangement Contractors (PACs) (Package C)

Sapura Subsea Services Sdn. Bhd. ("SSS") has been Awarded to undertake the Works (as defined below) for the Provision of Pan Malaysia Underwater Services Contract (“Contract”) for the following Petroleum Arrangement Contractors (PACs) (Package C):- 

1.  Sarawak Shell Bhd /Sabah Shell Petroleum Company Limited;

2. MURPHY Sarawak Oil Co., Ltd. / MURPHY Sabah Oil Co., Ltd; 

3. Repsol Oil & Gas Malaysia Limited; and

4. Kebabangan Petroleum Operating Company Sdn Bhd. 

The scope of work consists of underwater services which includes the utilisation of vessels, air and saturation diving, remotely operated vehicles (“ROV”).The scope also covers inspection, maintenance and repair works to support the PACs’ underwater facilities located at the offshore waters of East Coast Malaysia (“Works”). The Contract is for a period of 5 years and the Works performed is based on a call-out basis and the value of the Contract is dependent on each work order throughout the Contract period.

The Works are expected to be completed by Q3 2023.

FINANCIAL EFFECTS

The Contracts 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 (“the Group”) for the financial year ending 31 January 2019, for Contracts that extend beyond 31 January 2019, the financial period(s) thereafter within the duration of the Contracts.

RISK FACTORS

Risk factors affecting the Contracts include execution risks such as availability of skilled manpower and materials, pricing, permits, 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 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 November 2018.