INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that its subsidiary, OceanMight Sdn Bhd has received a Letter of Award from Sarawak Shell Berhad (“SSB”) and Sabah Shell Petroleum Co. Limited (“SSPC”) as the Primary Contractor for the Price Agreement for Engineering, Procurement and Construction (EPC) of Standard Wellhead Platforms for SSB/SSPC (“Price Agreement”).

A formal Contract document for the abovementioned Price Agreement shall be executed in due course.

The utilization of this Price Agreement is subject to Purchase Order to be issued by SSB and SSPC.

DURATION OF CONTRACT

The Price Agreement is effective from 24th October 2022 until 23rd October 2027.

FINANCIAL EFFECTS

The Price Agreement will have no effect on Share Capital of the Company and is expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of the supply period.

RISK FACTORS

Risk factors affecting the Price Agreement include execution risks such as availability of skilled manpower and materials, forex and changes in pricing, weather conditions and/or political, economic and regulatory conditions.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders and/or person connected with them has any interest, direct or indirect in the abovementioned Price Agreement.

DIRECTORS’ STATEMENT

The Board is of the opinion that the abovementioned Price Agreement is in the best interest of KKB and its Group.

This Announcement is dated 25 November 2022.