1.            Introduction

The Board of Directors of Malaysia Marine and Heavy Engineering Holdings Berhad ("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 3 November 2022 from PETRONAS Carigali Sdn Bhd ("PCSB") to undertake the EPCIC Alliance for Kasawari CCS Project ("Contract"). PCSB had, on 29 November 2022, approved the release of this announcement to the public.

2.            Salient Terms

The Contract is to undertake the construction of a carbon capture & storage platform, and an 8-legged jacket at the value of approximately RM4.5 billion. The duration of the Contract is about 35 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 year 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 29 November 2022.