The Board of Directors of SapuraKencana Petroleum Berhad (SapuraKencana) today announced in a stock exchange filing that its subsidiary Sapura Navegação Marítima S.A., Brazil (SNM) has received notification from Petróleo Brasileiro S.A. (Petrobras) that SNM has been awarded contracts to charter and operate three units of Pipe Laying Support Vessels (PLSV) at total award value of approximately USD2.7 billion (the Award). The three PLSVs will be constructed outside Brazil.
The contracts are for a period of eight years with extension option for additional eight years and are expected to commence by the second quarter of 2016.
RISK FACTORS
The risks associated with the Award would be customary project risks during the construction of the PLSVs and performance of offshore works including maintaining safety and health. There would also be sovereign risk as the marine construction works would be performed in Brazil. However, SNM has in place procedures and processes which are of international standards to address and manage these risks.
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Shipbuilding Tribune Staff, June 27, 2013