SapuraKencana Petroleum Berhad - onenew

Announcements

Date: 25 September 2012

OTHERS SAPURAKENCANA PETROLEUM BERHAD ("SKPB") CONTRACT FOR THE PROCUREMENT, CONSTRUCTION AND INSTALLATION FOR A PRODUCTION/PROCESSING PLATFORM, PIPELINES AND PIPELINE END MANIFOLD FOR THE MANORA FIELD DEVELOPMENT, THAILAND

Type	Announcement
Subject	OTHERS
Description	SAPURAKENCANA PETROLEUM BERHAD ("SKPB") CONTRACT FOR THE PROCUREMENT, CONSTRUCTION AND INSTALLATION FOR A PRODUCTION/PROCESSING PLATFORM, PIPELINES AND PIPELINE END MANIFOLD FOR THE MANORA FIELD DEVELOPMENT, THAILAND
INTRODUCTION SapuraKencana Petroleum Berhad ("SapuraKencana" or the "Company") is pleased to announce that its wholly-owned subsidiary, TL Offshore Sdn Bhd ("TLO") has entered into a Contract forProcurement, Construction and Installation for a Production/Processing Platform, Pipelines and Pipeline End Manifold for the Manora Field Development, Thailand with Pearl Oil (Amata) Limited, a Mubadala Petroleum affiliate ("Contract"). Pearl Oil (Amata) Limited is the operator of the Manora oil field in the G1/48 concession with partners Tap Energy (Thailand) and Northern Gulf Petroleum. INFORMATION ON THE CONTRACT The Contract comprises of procurement of equipment and bulk materials, fabrication, transportation, installation and hook-up of a Wellhead Processing Platform and two 2km pipelines in the Manora oil field, which lies in 44m of water approximately 80km from the coast of Thailand. Works for this Contract will be carried out in consortium with Clough (Thailand) Co. Ltd. ("CTL"), a subsidiary of Clough Limited, where CTL will undertake the procurement and fabrication and TLO will undertake the transportation and installation. Works for this Contract is scheduled to commence in September 2012 and completed in early 2014. FINANCIAL EFFECTS TLO's scope of work is valued at approximately USD25.0 million and 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 execution risks such as availability of skilled manpower and materials, changes in prices of materials, and changes in political, economic and regulatory conditions. SapuraKencana Group has, throughout the years, established its track record and expertise to undertake such projects. 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 25 September 2012.