INTRODUCTION

SapuraKencana Petroleum Berhad ("SapuraKencana" or the "Company") is pleased to announce that its wholly-owned subsidiary company, Kencana HL Sdn Bhd ("Kencana HL") has received a letter of award from Kebabangan Petroleum Operating Company Sdn Bhd ("KPOC") for the provision of hook-up and commissioning services for Kebabangan Northern Hub Development Project (the "Contract").

INFORMATION ON THE CONTRACT

The Contract comprises provision of hook-up and commissioning services for offshore facilities for the Kebabangan oil field located offshore Sabah. The Company estimates that the total value of the Contract is approximately RM106.0 million. The work for the Contract is expected to commence in middle of 2012 and is expected to be completed by middle of 2014.

FINANCIAL EFFECTS

The Contract is expected to contribute positively towards the earnings and net assets per share of SapuraKencana Group for the duration of the Contract.

RISK FACTORS

Risk factors affecting the Contract include, but are not limited to, execution risks such as availability of skilled manpower and materials, changes in cost of manpower and services as well as external factors such as weather condition. SapuraKencana Group has, throughout the years, established its track records and expertise to undertake such projects.

As such, the Management believes that SapuraKencana Group is able to mitigate the abovementioned risk factors.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTEREST

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of the Company has any direct or indirect interest in the Contract.

DIRECTORS' STATEMENT

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

This announcement is dated 9 August 2012.