| Type | Announcement |
| Subject | OTHERS |
| Description |
AWARD OF CONTRACT FOR THE PROVISION OF ENGINEERING, PROCUREMENT, CONSTRUCTION, COMMISSIONING OF WELLHEAD PLATFORMS FOR D18 PHASE 2 PROJECT AND D28 PHASE 1 PROJECT (CONTRACT NO.: CHO/2017/D18/1002) |
1. INTRODUCTION
Further to the announcement made on 30 March 2018, the Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that PETRONAS Carigali Sdn Bhd (“PETRONAS Carigali”) has awarded OceanMight Sdn Bhd (“OMSB”), a subsidiary of KKB, an award of contract for the Provision of Engineering, Procurement, Construction, Commissioning of Wellhead Platforms for D18 Phase 2 project via a Letter of Award dated 19 July 2018 (“the Contract”).
OMSB is an approved PETRONAS Licensed Company for Offshore Facilities Construction - Major Fabrication - Offshore Facilities.
2. DURATION OF CONTRACT
The Contract duration is approximately 27 months, in which 15 months are for work execution for D18 Phase 2 Project while the other 12 months are the warranty period. The Contract has commenced in July 2018.
The scope for the Contract shall be Engineering, Procurement, Construction, Transportation, Installation and Commissioning of D18 JT-D Wellhead Platform. The detailed scope of works is specified in the Contract documentation between OMSB and PETRONAS Carigali.
With the award of D18 Phase 2 Project, the total combined contract sum for both D28 Phase 1 and D18 Phase 2 Projects is approximately RM226 million.
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 material, 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 6 August 2018
| Company Name | KKB ENGINEERING BERHAD |
| Stock Name | KKB |
| Date Announced | 06 Aug 2018 |
| Category | General Announcement for PLC |
| Reference Number | GA1-06082018-00022 |
