Announcements


Date: 16 December 2013

OTHERS SAPURAKENCANA PETROLEUM BERHAD AWARD OF CONTRACTS FOR THE PROVISION OF INTEGRATED TRANSPORTATION AND INSTALLATION OF OFFSHORE FACILITIES FOR YEAR 2014 TO 2016 (PACKAGES C & D)


Type Announcement
Subject OTHERS
Description SAPURAKENCANA PETROLEUM BERHAD 
AWARD OF CONTRACTS FOR THE PROVISION OF INTEGRATED TRANSPORTATION AND INSTALLATION OF OFFSHORE FACILITIES FOR YEAR 2014 TO 2016 (PACKAGES C & D)

 INTRODUCTION

SapuraKencana Petroleum Berhad ("SapuraKencana" or the “Company") is pleased to announce that its wholly-owned subsidiary, TL Offshore Sdn. Bhd. ("TLO") has been awarded contracts for Packages C & D by eleven (11) PETRONAS’ Production Sharing Contractors (“PSCs”) for the provision of works and services for the integrated transportation and installation of offshore oil and gas facilities for the year 2014 to 2016 (“Contracts”) with optional extension of one (1) year.

TLO has received the official letters of award in relation to the Contracts from all of the PSCs.


INFORMATION ON THE CONTRACTS

The Contracts would require the provision and performance of various transportation and installations services for offshore oil and gas structures which includes topside, jackets and risers as well as laying of subsea pipelines and its associated works (“Works”). The Works will be performed for a duration of 3 years from 2014 to 2016 with the option for one (1) year extension. The scope of Works and project schedule relating to the same shall be specified and determined on a yearly basis. The Contracts value will depend on the actual work orders issued by the PSCs during the Contracts period.

Commencement of Works is expected to be in March 2014 around various offshore locations in Malaysian waters.


FINANCIAL EFFECTS

The award of the Contracts 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 year ending 31 January 2015 and the financial periods thereafter for the duration of the Contracts.


RISK FACTORS

Risk factors affecting the Contracts are mainly operational in nature and include changes in economic and regulatory conditions. SapuraKencana Group has the 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 Contracts.


DIRECTORS’ STATEMENT

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

This announcement is dated 16 December 2013



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