In an announcement to Bursa Malaysia Bhd, AmInvestment Bank Berhad said that Kencana Petroleum Ventures Sdn Bhd (KPV) and Mermaid Drilling (Singapore) Pte Ltd on Tuesday signed a letter of agreement confirming the terms and conditions for the proposed design, construction, and completion of a second newbuild self-erected tender rig and derrick equipment set (KM-2).
KPV and Mermaid agreed to the following:
--Mermaid exercises the option to purchase KM-2 from Kencana HL Sdn Bhd (Kencana HL) pursuant to the purchase option in a contract that Mermaid Kencana Rig 1 Pte Ltd (MKR1) and Kencana HL signed on Oct. 22, 2007; and
--KM-2's first client is in Malaysia.
Provided that the above conditions are satisfied, KPV and Mermaid will incorporate a new company--MKR2--in Singapore to jointly own KM-2.
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