1. INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that its subsidiary company, OceanMight Sdn Bhd (“OMSB”) (approved PETRONAS Licensed Company for Offshore Facilities Const-Major Fabrication-Offshore Facilities) has been awarded a contract on 14 March 2018 from  PETRONAS Carigali Sdn Bhd (“PETRONAS Carigali”) for the Provision of Engineering, Procurement, Construction and Commissioning of Wellhead Platforms for D18 Phase 2 Project and D28 Phase 1 Project (“the Contract”).

2. DURATION OF CONTRACT

The Contract duration is approximately 21 months, in which 9 months are for the work execution for D28 Phase 1 Project while another 12 months are the warranty period. The Contract will commence in March 2018.

The scope for D28 Phase 1 Project shall be Engineering, Procurement, Construction, Transportation, Installation and Commissioning. The detailed scope of works is specified in the Contract document between OMSB and PETRONAS Carigali.

3. FINANCIAL EFFECTS

The Contract will have no effect on the Issued and Paid-up Capital of the Company and is expected to contribute positively towards the earnings and net assets of the Company for the duration of the Contract.

4. RISK FACTORS

Risk factors affecting the award include execution risks such as changes in the basis of design, availability of skilled manpower, delays in material deliveries, changes in prices of materials, changes in political, economic and regulatory conditions.

5. 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 Contract.

6. DIRECTORS’ STATEMENT

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

This announcement is dated 30th March 2018.