Friday 7 December 2018

The Board of Directors of Sapura Energy Berhad announced that its wholly-owned subsidiary, Sapura Fabrication Sdn Bhd jointly in a consortium with Afcons Infrastructure Limited, the flagship Engineering Procurement Construction infrastructure arm of the Shapoorji Pallonji Group, has been awarded with a contract for Offshore Process Platform (Central Processing Platform & Living Quarters) Project for development of KG-DWN-98/2 NELP Block from Oil and Natural Gas Corporation Limited with a value of approximately Malaysian Ringgit Three Billion (approximately USD720 million).

Sapura Fabrication's share in the consortium is 48.3% which will translate to approximately USD352,901,412 (approximately MYR1,472,410,561). The contract value is inclusive of all associated costs including insurance and the local GST.

The Contract scope of work shall include Surveys (pre-engineering, post construction/pre- installation and post installation), Design, Engineering, Procurement, Fabrication, Load Out, Tie Down/Sea Fastening Tow-out/Sail Out, Transportation, Installation, Hook-Up, Testing, Pre-Commissioning and Commissioning of the entire facilities for KW-DWN-98/2 Project Development Offshore Platform (Central Processing Platform & Living Quarters).

The works are expected to be completed by January 2021.

The Contract announced herein will have no effect on the issued capital of the Company and is expected to contribute positively towards the earnings of Sapura Energy Group for the financial year ending 31 January 2019, and for the financial period thereafter within the duration of the Contract.

Risk factors affecting the Contract including execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic and regulatory conditions. Notwithstanding, the Group has established a successful track record undertaking similar projects.