Kencana Snags Barge Conversion Contract

The Board of Directors of Kencana Petroleum Berhad has announce that its wholly owned subsidiary, Kencana HL has been awarded with a contract to undertake barge conversion work.

KHL has been awarded the Contract by MCB Partnership, an entity based in Australia comprising McConnell Dowell Constructors (Aust) Pty Ltd and Bovis Lend Lease Pty Limited. The Contract comprises conversion of a flat-top barge to a pipe-lay barge. The scope of work includes barge modifications, fabrication and installation of structural items and equipment, testing and commissioning. This is part of Sydney’s Desalination Project to deliver potable water from the Kurnell Desalination Plant to Sydney Water Corporation's existing water distribution system.

The Contract value based on a combination of lump sum amount and unit rates is estimated at approximately RM27 million. The Contract is expected to be fully completed by the end of 2008, and is expected to contribute positively to the earnings of Kencana Petroleum Group for the financial year ending 31 July 2008 and 2009.

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