INTRODUCTION

SapuraKencana Petroleum Berhad ("SapuraKencana" or the “Company") is pleased to announce that its wholly-owned subsidiary company, Allied Marine & Equipment Sdn Bhd, has received a letter of award from PETRONAS Carigali Sdn Bhd (“PETRONAS Carigali”) for the Provision of Underwater Services (the “Award”). The value of the Award is approximately RM700 million which comprises provision of underwater services, including inspection, repair and maintenance services utilising specialised vessels, equipment and personnel covering PETRONAS Carigali offshore oil and gas fields in Malaysia.

DURATION OF THE AWARD

The duration of the Award is three and a half (3 ½) years which will be effective from October 2012 until April 2016, with the option to extend for one (1) additional year. 

RISK FACTORS

Risk factors affecting the Award include execution risks such as availability of skilled manpower and materials, changes in prices of materials, and changes in political, economic and regulatory conditions. The Company has throughout the years established its track records and expertise to undertake such projects. Notwithstanding this, the Company shall ensure strict compliance to the safety and operational procedures in the execution of contract requirements.

FINANCIAL EFFECTS

The Award will have no effect on the issued and paid-up capital of the Company and is expected to contribute positively towards the earnings and net assets per share of SapuraKencana Group for the financial years ending 31 January 2013 to 2017.

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 Award.

DIRECTORS' STATEMENT

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

This announcement is dated 1 November 2012.