HANDAL

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OTHERS HANDAL ENERGY BERHAD - AWARD OF CONTRACT

HANDAL ENERGY BERHAD

Type Announcement
Subject OTHERS
Description
HANDAL ENERGY BERHAD
- AWARD OF CONTRACT

1. INTRODUCTION

 

Handal Energy Berhad (“Handal” or the “Company”) is pleased to announce that Borneo Seaoffshore Engineering Sdn Bhd (“BSO Engineering”), a 51% owned subsidiary of Handal, has secured a new contract from ExxonMobil Exploration and Production Malaysia Inc. (“EMEPMI”)

 

2. DETAILS OF THE CONTRACT SECURED

 

The contract is for a five (5) year duration with an extension option of an additional one (1) year for the provision of pipeline isolation services for EMEPMI-operated platforms (“Contract”).

 

The letter of award for the Contract was received by BSO Engineering on 28 August 2020 and EMEPMI’s approval to announce the Contract was obtained on 6 November 2020.

 

The Contract secured does not have any specified value as it is on a “call-out” basis whereby work order will be issued at the discretion of EMEPMI based on their activities schedule and rates throughout the duration of the Contracts.

 

3. FINANCIAL EFFECTS

 

The Contract will not have any effect on the share capital and shareholding structure of the Company. The Contract is not expected to have any material effect on the net assets of Handal and its subsidiaries (“Handal Group”) for the financial year ending (“FYE”) 30 June 2021.

 

The Contract is expected to contribute positively to the earnings of Handal Group for the FYE 30 June 2021 and in subsequent FYEs until the expiry of the Contract. 

 

4. RISKS IN RELATION TO THE CONTRACT

 

The Contract is not expected to expose the Handal Group to any new risk factors as the Handal Group is already actively involved in the provision of pipeline isolation services.

 

5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

 

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of Handal has any direct or indirect interest in the Contract.

 

6. APPROVALS REQUIRED

 

The Contract is not subject to the approval of the shareholders of the Company or any regulatory authorities.

 

7. STATEMENT BY DIRECTORS

 

The Board of Directors of the Company is of the opinion that the Contract is in the ordinary course of business and is in best interest of the Company.

 

This announcement is dated 9 November 2020.






Announcement Info

Company Name HANDAL ENERGY BERHAD
Stock Name HANDAL
Date Announced 09 Nov 2020
Category General Announcement for PLC
Reference Number GA1-09112020-00011