MEMORANDUM OF UNDERSTANDING HANDAL RESOURCES BERHAD (HRB or the Company) - MEMORANDUM OF UNDERSTANDING WITH NABORS DRILLING INTERNATIONAL LIMITED

HANDAL RESOURCES BERHAD

Type Announcement
Subject MEMORANDUM OF UNDERSTANDING
Description
HANDAL RESOURCES BERHAD (HRB or the Company)
-	MEMORANDUM OF UNDERSTANDING WITH NABORS DRILLING INTERNATIONAL LIMITED

The Company wishes to announce that Handrill Sdn. Bhd. (‘HSB’), a 99.5% owned subsidiary of the Company, has on 5th November 2015 entered into a Memorandum of Understanding ('MOU') with NABORS DRILLING INTERNATIONAL LIMITED (‘NABORS’), a company incorporated in Bermuda.

NABORS is engaged in the business of drilling exploratory and development oil and gas wells, working over or servicing existing wells, providing comprehensive oilfield hauling, engineering, civil construction, logistics, and facilities maintenance and project management services.

The rationale for the MOU is to accommodate the intention of both HSB and NABORS to explore the possibility of forming a strong cooperative relationship developed as a result of significant effort to capture several business opportunities with mutually beneficial outcomes (“Cooperation”), including but not limited to:

(a)  Jointly developing and marketing Conventional Workover Rig(s) (smaller, lighter, cost effective and fit for purpose);

(b)  Overhauling and maintenance, manufacturing or fabrication of new offshore pedestal cranes, offshore crane rental business, workover projects and related services; and

(c)  Other opportunities to be mutually agreed.

The objective of the Cooperation is to work together to explore business opportunities relating to Malaysian rig business, comprising drilling and workover operations.

The MOU shall remain valid for a period of six (6) months unless its term is extended by mutual written agreement or until it is replaced in whole or in part by definitive agreements or either party can terminate the MOU by giving at least thirty (30) days prior written notice in writing to the other Party. 

The MOU is not expected to immediately have any material effects on the earnings per share, net assets per share, gearing and share capital of HRB for the financial year ending 31st December 2015.

None of the Directors or major shareholders of HRB or persons connected to them have any interest, direct or indirect, in the MOU.

This announcement is dated 5th November 2015.






Announcement Info

Company Name HANDAL RESOURCES BERHAD
Stock Name HANDAL
Date Announced 05 Nov 2015
Category General Announcement for PLC
Reference Number GA1-04112015-00028