20. PROVISIONS (CONTINUED) (a) Provision for legal claim Group 31.12.2024 31.12.2023 RM’000 RM’000 At 1 January/1 July 2,830 7,320 Movement in provisions - (4,799) Foreign currency translation (75) 309 At 31 December 2,755 2,830 Provision is held for a potential fine in relation to a drilling rig gas release incident in June 2018. In the previous financial period, tariff payables in relation to the Cook P2 Water Injection well was fully settled. (b) Provision for employee benefits Silterra Malaysia Sdn. Bhd., a subsidiary of the Group (“Subsidiary”) implemented an Employees’ Share Appreciation Rights program (“SAR” or “Program”) commencing from 1 August 2022 (“Commencement Date”) which will grant eligible employees and directors rights to hold SAR shares in the Subsidiary. The salient features of the SAR based on its By-Laws are as follows: (i) The maximum unit of SAR available under the Program is 240,267,436 units of SAR at any point in time when a grant is made throughout the duration of the Program. The Program shall be in force for a period of five (5) years commencing from 1 August 2022. (ii) The eligibility criteria include amongst others: employees who are employed by the Subsidiary for a period not less than twelve (12) calendar months consecutively and directors that have not served a notice to resign or received a notice of removal. However, the Subsidiary Board may determine any other eligibility criteria and/or waive any of the conditions of eligibility for purposes of selecting an eligible person at any time and from time to time, in the Subsidiary Board’s discretion. (iii) The aggregate unit of SAR to be granted to an eligible person shall be determined at the sole and absolute discretion of the Subsidiary Board after taking into consideration, amongst other factors, the performance during appraisal period, and such other factors that the Subsidiary Board may deem relevant in its discretion. (iv) The grant price for each unit of the SAR shall be determined by the Subsidiary Board based on calculated fair market value at the grant date. (v) The SAR granted shall vest on the grantee on the anniversary of grant date over four years period. On each anniversary, 25% of the granted SAR Unit shall vest. (vi) The vested SAR is exercisable in whole during the lifetime by the grantee within the SAR period. The vested SAR can be exercised at any time so long as the employees remains in service in the Subsidiary and so long as the director has not served a notice to resign or received a notice of removal. 165 Financial Statements DAGANG NeXCHANGE BERHAD Integrated Report 2024 NOTES TO THE FINANCIAL STATEMENTS for the financial year ended 31 December 2024
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