Alam Maritim Resources Berhad (“AMRB”) announced that its wholly owned subsidiary, Alam Maritim (M) Sdn Bhd, has received a letter of award from an independent oil and gas exploration and production company for the Provision of Underwater Services comprising subsea inspection, maintenance and repair.
The Contract is for a primary period of three years with an extension option exercisable by the Client for another one year. The Contract is for a value of up to approximately RM182 million.
The risks associated with the Contract are mainly operational risks contributed by human and/or technical inefficiency as well as uncertainties in supply and prices of materials, economic, regulatory and political conditions.
In managing, if not mitigating such risks, the Company will closely monitor the schedules of activities and ensuring timely delivery of main materials and deliverables from third party suppliers/contractors while ensuring strict compliance to the safety and operational procedures in the execution of the Contract.
The Contract is expected to positively contribute to the earnings and net assets of AMRB for the financial year ending 31 December 2013 up to 2017. Notwithstanding this, the Contract is not expected to have any effect on the issued and paid-up share capital and shareholding structure of the Company.
None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in either of the above mentioned Contract.