The Board of Directors of Sapura Energy Berhad ("Sapura Energy" or the "Company") ("Board") is pleased to announce that its wholly-owned subsidiary, Sapura Fabrication Sdn Bhd ("Sapura Fabrication") jointly in a consortium with Afcons Infrastructure Limited ("Afcons"), the flagship Engineering Procurement Construction infrastructure arm of the Shapoorji Pallonji Group, has been awarded with a contract for Offshore Process Platform (Central Processing Platform & Living Quarters) Project for development of KG-DWN-98/2 NELP Block ("Contract") from Oil and Natural Gas Corporation Limited with a value of approximately Malaysian Ringgit Three Billion (MYR3,000,000,000).
Sapura Fabrication's share in the consortium is forty eight point three per cent (48.3%) which will translate to approximately United State Dollars Three Hundred Fifty Two Million Nine Hundred One Thousand Four Hundred and Twelve (USD352,901,412) (approximately Malaysian Ringgit One Billion Four Hundred Seventy Two Million Four Hundred Ten Thousand Five Hundred and Sixty One (MYR1,472,410,561) at the exchange rate of USD=MYR4.1723). The contract value is inclusive of all associated costs including insurance and the local GST.
INFORMATION ON THE CONTRACT
The Contract scope of work shall include Surveys (pre-engineering, post construction/pre- installation and post installation), Design, Engineering, Procurement, Fabrication, Load Out, Tie Down/Sea Fastening Tow-out/Sail Out, Transportation, Installation, Hook-Up, Testing, Pre-Commissioning and Commissioning of the entire facilities for KW-DWN-98/2 Project Development Offshore Platform (Central Processing Platform & Living Quarters).
The works are expected to be completed by January 2021.
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 ("the Group") for the financial year ending 31 January 2019, and for the financial period thereafter within the duration of the Contract.
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 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 Contract herein.
The Board is of the opinion that the acceptance of the Contract herein is in the best interest of the Company.
The announcement is dated 6 December 2018.