INTRODUCTION
SapuraKencana Petroleum Berhad ("SapuraKencana" or the “Company") is pleased to announce that its wholly-owned subsidiary company, Kencana HL Sdn Bhd, has, on 16th May 2013 accepted a letter of award from ExxonMobil Exploration and Production Malaysia Inc. for the provision of hook up and commissioning and topside major maintenance services (the “Contract”).
INFORMATION ON THE CONTRACT
The Contract comprises provision of hook up, commissioning and topside major maintenance services for a primary term of five (5) years with an option to extend for a further one (1) year period.
The Contract includes the supply of manpower and equipment, material purchased and provision of marine spread. The total value of the Contract is based on unit rates for the services provided estimated to be between RM300 million to RM500 million over the contract period.
CONTRACT EFFECTS
The Contract will enhance the Company’s capability to provide integrated services to offshore oil and gas industries as a premium EPCIC contractor.
FINANCIAL EFFECTS
The Contract will have no effect on the issued and paid-up share capital of the Company 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
The risks associated with the Contract are mainly operational risks. Notwithstanding this, the Management shall always ensure strict compliance with the safety and operational procedures in the execution of the work.
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 27 May 2013.