INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that its subsidiary company, OceanMight Sdn Bhd has accepted and signed a Letter of Award (“LOA)”from SAPURA FABRICATION SDN BHD (“SFSB”) for the Provision of Procurement and Construction for Wellhead Deck, Piles and Conductors AND subject to Terms and Conditions pending the signing of the Sub-Contract Agreement.

INFORMATION ON THE CONTRACT

This LOA is part of the SFSB’s engineering, procurement, construction, installation and commissioning (“EPCIC”) for the Pegaga Development Project (Mubadala Petroleum) in Block SK320, offshore waters of Sarawak. The said Sub-Contract shall commence in April 2018.

FINANCIAL EFFECTS

The above award is expected to contribute positively to the earnings and net assets of the KKB Group for the financial years ending 31 December 2018 to 31 December 2019.

RISK FACTORS

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

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

To the best of our knowledge, none of the Directors or major shareholders or person connected with them has any interest, direct or indirect in the abovementioned award. The Board is of the opinion that the abovementioned award is in the best interest of KKB and its Group.

This announcement is dated 15 May 2018.