Hess Exploration Hires One SSV from Jasa Merin (Malaysia)

SILK Holdings Bhd (SILK) announced that its subsidiary, Jasa Merin (Malaysia) Sdn Bhd (JMSB), has been awarded a contract by Hess Exploration and Production Malaysia B.V. (Hess Exploration) for the provision of a Straight Supply Vessel (SSV).

The contract is expected to enter into force on September 1, 2013 for a primary term of three years and may be extended for a further year at the discretion of Hess Exploration.

Risk factors affecting the contract are mainly operational risks such as accidents and unexpected breakdown of vessels. Notwithstanding this, the Company voiced its commitment to 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 contract, valued at approximately RM39 967,500 for the primary term, is expected to contribute positively to the earnings and assets of the Group for the financial year ending 31 July 2014 and beyond.

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SILK, August 30, 2013