Malaysia: PETRONAS Carigali Hires Two AHTS Vessels from Jasa Merin

SILK Holdings Bhd (“SILK”) announced that its subsidiary, Jasa Merin (Malaysia) Sdn Bhd, has been awarded two contracts by PETRONAS Carigali Sdn Bhd, for the provision of two Anchor Handling Tug Supply Vessels.

The contracts are effective from 1 January 2013 up to 31 December 2017, for a firm period of five years. Both contracts can be extended for a further one year period at the discretion of PCSB.

Risk factors affecting the Contract are mainly operational risks such as accidents and unexpected breakdown of vessels. Notwithstanding this, the Company shall always ensure strict compliance to the safety and operational procedures in the execution of contract requirements and has developed a programmed maintenance schedule which stringently adheres to the International Safety Management (ISM) Standards in maintaining performance and seaworthiness of all vessels.

The contracts in total, valued at approximately RM251.85 million (approx. 82.7 USD million) for their primary term, are expected to contribute positively to SILK Group earnings and assets for the financial year ending 31 July 2013, and beyond. The contracts are not expected to have any effect on the share capital and shareholding structure of SILK. There are no significant risks involved in JMSB fulfilling the obligations under the contracts.

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SILK, January 8, 2013