Kencana Petroleum Wins Platform Contract

Kencana Petroleum's wholly owned subsidiary, Kencana HL Sdn Bhd has received a Letter of Award from Carigali-PTTEPI Operating Company for the provision of Engineering, Procurement, Construction and Commissioning of offshore platform and structures referred to as CLQ Deck and Jacket, CFP and Tripod and three Bridges.

The contract covers the provision of engineering, procurement, construction and commissioning of multiple structures and sub-structures for Block B-17 within the Malaysia Thailand Joint Development Area. The Contract value is estimated at approximately US $39 million (RM136.5 million). The Contract scope will be carried-out mostly in Kencana HL's fabrication yard in Lumut, Perak. Work is expected to be fully completed by mid 2009.

This is the third contract secured by Kencana Petroleum Group within the Malaysia Thailand Joint Development Area. Currently the Group is already undertaking two separate contracts for the green field and brown field development projects within the Malaysia Thailand Joint Development Area. Both of the two contracts are for Carigali Hess Operating Company Sdn Bhd to provide engineering, procurement, construction, installation and commissioning of structures and modules valued at a total of US $254 million. These two projects are estimated to be completed by end 2007.