SapuraKencana Well-Poised for Global Play

Kuala Lumpur,May 16,2012-Shareholders of Malaysia largest intergrated oil and gas service provider SapuraKencana Petroluem Berhad (SapuraKencana) stand to potentially benefit from the Group's enlarged sizeas it begins a new chapter of growth as a homegrown global player. En-route to listing its shares on the Main Market of Bursa Malaysia tomorrow,SapuraKencana today officially launched its Prospectus.A total of 5,004,366,196 shares are to be listed at an issue price of RM2.00 per share.The listing will result in SapuraKencana market capitalisation valued at slightly over RM10 billion At the prospectus launch ceremony ,Tan Sri Nor Mohamed Yakcop,Minister in the Prime Minister's Dept,Dato Hamzah Bakar-SapuraKencana's chairman, said,"As a proud Malaysian flag-bearer in the highly competitive global oil and gas industry,we are now equipped with the scale and size required to thrive in an arena that is trending towards full service contracts.With our new found size and strong fundamentals, we can enhance our shareholder's value.These are exciting times ahead for two home grown companies coming together as a one-stop service provider in the dynamic global oil and gas landscape.As and enlarged entity,we can now offer a fullspectrum of EPCIC (engineering,procurement,construction,installation and commissioning) services covering the oil and gas value chain.Given that opportunities abound in what is a most favourable operating landscape,we are optimistic about expanding our global footprint by utilizing our capabilities as turnkey operator.The group today has presence in the Asia Pasific region,India,Africa,South America and Russia among others and we are set to expand our reach as we we want to be competent anywhere,everywhere. Dato'Hamzah added that oil prices are expected to remain robust.This not only means a more condusive marketplace for us also the ability to bid for jobs that are more technologically complex and potentially more rewarding.All in all,the company is well-positioned to deliver on our commitment to grow at a compounded annual growth rate of 15% to 20% moving forward.He said, the launch odf SapuraKencana's Prospectus today followas the successful distribution of SapuraKencana shares and cash payments to entitled shareholders on 15 May 2012,as part of the merger exercise. As we expand our reach as an enlarged entity we aim to play a significant role in generating more business for our base of some 500 local vendors and supplier.Many of these vendors and suppliers have been able to benefit from opprtunities afforded by our growth and we see this process continuing.This in turn will help contributr towards Malaysia's aim to become a regional oil and gas hub,Dato' Hamzah concluded. Both SapuraCrest and Kencana Petroluem undertook a capital repayment exercise by way of capital reduction,whereby all the SapuraCrest and Kencana Petroluem shares were cancelled and distributed to the entitled shareholders at a consideration of RM4.60 per SapuraCrest share and RM3.00 per Kencana Petroluem share respectively. Out of the 5,004,366,196 SapuraKencana shares that are to be listed on 17 May,2012,SapuraCrest's entitled shareholders received 2,498,928,847 shares while Kencana Petroluem's entitled shareholders received 2,505,437,349 shares.Shareholders of the two entities also received cash repayment totaling RM1.84 billion from the merger exercise.