1. Introduction

The Board of Directors of MHB wishes to announce that its wholly owned and major subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), has received a Letter of Award dated 21 September 2022 from Sarawak Shell Berhad (SSB) to undertake the engineering, procurement and construction (EPC) services of wellhead platform for the Rosmari-Marjoram gas project, off the coast of Sarawak, offshore Malaysia (“Contract”).

2. Salient Terms

The Contract is to undertake the construction of a wellhead platform, a topside, and  a 4-legged jacket at the value of approximately less than half a billion ringgit. The duration of the Contract is approximately 19 months.

3. Financial Effect

The Contract will not have any effect on the share capital and shareholding structure of MHB. The Contract, however, is expected to contribute positively to the earnings and net assets per share of MHB for the financial years ending 31 December 2023 onwards until the expiry of the Contract.

4. Risks

Risk factors affecting the Contract include execution risks, weather conditions and/or political, economic as well as operational and commercial impacts of COVID-19. Notwithstanding the risk factors, MMHE has established a successful track record in undertaking similar projects. 

5. Director’s and Major Shareholders’ Interest

None of the directors or major shareholders of MHB or persons connected to them has any interest, direct or indirect, in the Contract.

6. Directors’ Statement

The Board of Directors of MHB, after considering all the aspects of the Contract, is of the opinion that the acceptance of the Contract is in the best interests of MHB.

This announcement is dated 11 October 2022.