1. INTRODUCTION

The Board of Directors (“Board”) of Icon Offshore Berhad (“ICON/Company”) is pleased to announce that its subsidiary company, POSB has received a letter of award from a PAC to exercise the Extension Options No. 1 and 2 for the provision of one (1) jack-up drilling rig. 

2. BACKGROUND/DETAILS OF THE AWARD

The PAC had on 29 December 2020 issued a letter of award to POSB for their Drilling Program which has commenced in mid-April 2021 for a duration of 180 days for eight (8) wells. In the said letter of award, there are provisions for 3 contract extensions for up to 6 wells.

On 23 September 2021, POSB has received a letter of award from the PAC to exercise the Extension Options No. 1 and No. 2 for their Drilling Program. The expected commencement is in October 2021 for a period of 120 days for four (4) wells as per the following table:-

3. FINANCIAL EFFECTS ON ICON

The contract award is expected to contribute positively to the earnings, order book and net assets of ICON for the financial year ending 31 December 2021 and beyond. With this award, the Order Book will increase to RM770 million. Notwithstanding this, the Award is not expected to have any material effect on the share capital and shareholding structure of ICON.

4. RISKS ASSOCIATED WITH THE AWARD

The risks associated with the contract award are mainly operational risks such as accidents and unexpected breakdown of the rig. In mitigating such risks, ICON carries out routine dry-docking inspections, repairs and regular maintenance based on the Company’s comprehensive planned maintenance program. Together with ICON’s strict health, safety and security policy and procedures, ICON is of the view that the likelihood and impact of these risks are considered to be manageable within an acceptable level.

5. CONFIDENTIALITY

The contents of this announcement follow the terms of the contract award and the approval for the release of the announcement has been provided by the PAC.

6. DIRECTORS' AND SHAREHOLDERS' INTEREST

None of the directors, major shareholders of ICON and/or persons connected with the directors or its major shareholders have any interest, direct or indirect in the Award.

7. DIRECTORS' STATEMENT

Our Board believes that the contract award is in the best interest of POSB and the holding company, ICON.