Announcements


Date: 15 March 2013

OTHERS 2ND EXTENSION OF CONTRACT FOR PROVISION OF SELF-ERECTING TENDER RIG, “T-6” FOR OFFSHORE DRILLING CAMPAIGN 2011-2013 (“T-6 CONTRACT”)

Type Announcement
Subject OTHERS
Description 2ND EXTENSION OF CONTRACT FOR PROVISION OF SELF-ERECTING TENDER RIG, “T-6” FOR OFFSHORE DRILLING CAMPAIGN 2011-2013 (“T-6 CONTRACT”)

 

INTRODUCTION

We refer to the announcement dated 1 September 2010 by SapuraCrest Petroleum Berhad and announcement dated 17 October 2012 by the Company in relation to the T-6 Contract where it was announced that its subsidiary, Tioman Drilling Company Sdn Bhd (“Tioman”), had secured a contract for deployment to and utilization by CARIGALI PTTEPI OPERATING COMPANY SDN BHD  and CARIGALI-HESS OPERATING COMPANY SDN BHD of the self-erecting tender rig, the T-6.

The T-6 Contract was for an initial duration of 28 months commencing from 21 December 2010 until 20 April 2013 and was subsequently extended until 20 July 2013.

CONTRACTUAL EXTENSION

The Company is pleased to announce that Tioman has on 6 March 2013 accepted the 2nd extension for the T-6 Contract for a further duration of 3 months commencing from 21 July 2013 (expiry of 1stextension) until 20th October 2013.

CONTRACT VALUE

The 2nd contract extension is valued at approximately USD9.3 Million.

EFFECT ON THE ISSUED AND PAID-UP CAPITAL OF THE COMPANY

The 2nd extension of the T-6 Contract will have no effect on the issued and paid-up capital of the Company and is expected to contribute positively to the Group's earnings and net tangible assets for the financial year ending 31 January 2014.

RISKS FACTORS

Risk factors affecting the T-6 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. The Company has throughout the years established its track records and expertise to undertake such projects. As such, the management believes that the Company 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 has any direct or indirect interest in the extension of the T-6 Contract.

DIRECTORS' STATEMENT

The Board of Directors of the Company is of the opinion that the extension of the T-6 Contract is in the best interest of the Company.

This announcement is dated 15 March 2013.




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