PETALING JAYA: KKB Engineering Bhd's subsidiary company OceanMight Sdn Bhd has accepted and signed a letter of award (LOA) from Sapura Fabrication Sdn Bhd (SFSB) for the provision of procurement and construction for wellhead deck, piles and conductors and subject to terms and conditions pending the signing of the sub-contract agreement.
This LOA is part of the SFSB’s engineering, procurement, construction, installation and commissioning for the Pegaga development project (Mubadala Petroleum) in Block SK320, offshore waters of Sarawak. The sub-contract commenced in April 2018.
"The award is expected to contribute positively to the earnings and net assets of the KKB group for the financial years ending Dec 31, 2018 to Dec 31, 2019.
It said risk factors affecting the sub-contract include execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic and/or regulatory conditions.
The stock was down four sen to 90 sen as at end of morning trade, with some 22,000 shares changing hands.