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 2 February 2023 from Carigali-PTTEPI Operating Company Sdn Bhd ("CPOC") to undertake the provision of EPCI of five (5) wellhead platforms, five (5) subsea pipelines and host tie-in works for Joint Development Area (“JDA”)  Field Development Project (Phase 6) ("Contract"). CPOC had, on 10 February 2023, approved the release of this announcement to the public.

2. Salient Terms

The scope of work of the Contract is to undertake the engineering, procurement, construction & installation (EPCI) of five (5) wellhead platforms, namely ADC, ADD, ADE, JKC and JKD, including the works on associated subsea pipelines and telecommunication upgrade for JDA Field Development Project (Phase 6) located in the Malaysia-Thailand Joint Development Area (“MTJDA”) at the value of approximately RM1.4 billion. The duration of the Contract is about 22 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 completion 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 resulting from any endemic/pandemic. 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 13 February 2023.