Further to the Company’s announcements dated 14 June 2019 and 2 December 2019 made by the Company in relation to the Provision of Jack Up Drilling Rig Perisai Pacific 101 (“PP101”) for Samarang Drilling Campaign (“Contract”) (“Announcements”). Unless defined herein, all italicised and capitalised terms used here shall bear the same meaning as ascribed to the same in the Announcements.

The Board of Directors of Perisai wishes to announce that  Perisai Drilling Sdn Bhd (“PDSB” or “the Principal”), a wholly-owned subsidiary of Perisai Drilling Holdings Sdn Bhd, a wholly-owned subsidiary of Perisai, had on 11 September 2019 entered into an Agency Agreement (“Principal Agreement”) with Perisai Offshore Sdn Bhd (“POSB” or “the Agent”), a 51% subsidiary of Perisai wherein the Principal appointed the Agent to procure contracts in the oil and gas sector for Petronas in Malaysia and as an agent for PP101 at a fee to be mutually agreed and set out in the Supplemental Agreement upon obtaining the necessary shareholders’ approval by Perisai and upon fulfilling Bursa Securities requirements for the Related Party Transaction (“RRPT”) of a Revenue or Trading Nature.

In view that the shareholders have granted their new mandate on the RRPT of a Revenue or Trading Nature at the Sixteenth Annual General Meeting of the Company, the Board of Directors of Perisai wishes to announce that PDSB had on 3 December 2019 entered into a Supplemental Agreement with POSB wherein both PDSB and POSB agreed to the following fees for the duration of the Contract, including any extensions thereof:

(a) 2% of the applicable day rates under the Contract (whether operating daily rate, standby rate, repair rate, force majeure rate, moving rate, less efficiency rate, re-drill rate, or other day rate as applicable);

(b) 2% of the applicable fees under the Contract (whether mobilization fee or demobilization fee); and

(c) For any reimbursable by client at cost plus percentage of cost, 2% of the tiered percentage of cost element, as applicable under the Contract. For avoidance of doubt, there shall be no agency fee payable where the reimbursement by client is at cost.

Further announcement on any material development on the above will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 3 December 2019.