The Board of Directors of SapuraKencana Petroleum Berhad announces that its wholly-owned subsidiary, Kencana HL Sdn. Bhd. has received Notices of Award both dated 2 July 2012 from Murphy Sarawak Oil Co., Ltd. for the Engineering, Procurement, Construction and Commissioning (EPCC) of Patricia Satellite (PT-SA) Topside and Serendah Accommodation (SN-AA) Topside.
The Contracts are for the provision of Engineering, Procurement, Construction and Commissioning (EPCC) of Patricia Satellite-A Platform (PT-SA) and Serendah Accommodation-A Platform (SN-AA) topsides facilities for the SK309/311 Serendah, Patricia & South Acis (SPSA) Development Projects which is part of Murphy Sarawak’s SK309/SK311 oil and gas field development located offshore Bintulu, Sarawak. The total value of both Contracts are estimated between RM250 million and RM300 million. The Contracts are expected to be completed and delivered to Murphy Sarawak in the first half of 2013.
The Contracts are expected to contribute positively to the earnings and net assets per share of SapuraKencana Petroleum Berhad Group for the duration of the Contracts.
Risk factors affecting the Contracts include but are not limited to 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 believe that the Company is able to mitigate the abovementioned risk factors.
None of the Directors or major shareholders or persons connected with the Directors or major shareholders of the Company has any direct or indirect interest in the Contracts.
The Board of Directors of SapuraKencana is of the opinion that the acceptance of the Contracts is in the best interest of the Company.
Source: SapuraKencana, July 26, 2012