Malaysia: Alam Maritim Secures ExxonMobil Charter Contract

The Board of Directors of Alam Maritim Resources Berhad announced that its wholly owned subsidiary, Alam Maritim (M) Sdn Bhd, has received a letter of award from ExxonMobil Exploration and Production Malaysia Inc (EMEPMI) and the parties have signed a Charter Party Agreement for the provision of one (1) unit accommodation barge/vessel.

The Contract executed by the parties on 28 May 2012, is for a primary period of eighteen (18) months with an extension option exercisable by EMEPMI for another twelve (12) months. The Contract is for a value of up to RM125.6 million (if EMEPMI engages the barge/vessel for the full duration – inclusive of optional period).

The Contract is expected to positively contribute to the earnings and net assets of AMRB for the financial year ending 31 December 2012 and beyond. Notwithstanding this, the Contract is not expected to have any material effects on the share capital and shareholding structure of the Company.

The risks associated with the Contract are mainly operational risks such as accidents and unexpected breakdown of vessels. In mitigating such risks, the Company has developed a programmed maintenance schedule which stringently adheres to the International Safety Management (ISM) Standards in maintaining performance and seaworthiness of all its vessels.

The Board of Directors of AMRB is of the opinion that the acceptance of the Contract is in the best interest of the Company.

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Source: Alam Maritim, May 30, 2012