OTHERS LETTER OF AWARD BY PETRONAS RESEARCH SDN BHD TO HANDAL SIMFLEXI SDN BHD FOR JOINT DEVELOPMENT OF SUBSEA TECHNOLOGY

HANDAL RESOURCES BERHAD

Type Announcement
Subject OTHERS
Description
LETTER OF AWARD BY PETRONAS RESEARCH SDN BHD TO HANDAL SIMFLEXI SDN BHD FOR JOINT DEVELOPMENT OF SUBSEA TECHNOLOGY

INTRODUCTION

The Board of Directors of HANDAL RESOURCES BERHAD (“HRB” or “the Company”) is pleased to announce that it has on 10 July 2018 obtained the approval from PETRONAS RESEARCH SDN BHD the research and development arm of Petroliam Nasional Berhad (“PETRONAS”) to announce that PETRONAS RESEARCH SDN BHD has entered into an initial stage of technology collaboration with and has awarded to Handal Simflexi Sdn. Bhd. (“HSSB”), a 51% owned subsidiary of the Company, a Letter of Award (PRSB/FOF/LOA/2018/HSSB) for a joint development of subsea technology solution (“Contract”).

 

VALUE AND DURATION OF CONTRACT

The duration of the Contract is for a fixed period commencing from 13th June 2018 until 12th August 2018.

The details of the scope of works in relation to the Contract are in accordance with the detailed scope of works and deliverables as provided under the Contract as stated in the Letter of Award and R&D Collaboration Agreement Term Sheet between PETRONAS and HSSB.

The contract rates to be charged for the services to be rendered will be in accordance with the payment terms and conditions as detailed in the Term Sheet that the service is being provided during the tenure of the Contract.

 

FINANCIAL EFFECTS

The Contract is expected to contribute positively towards the earnings and net assets of the Company for the duration of the Contract.

 

RISK FACTORS

Risk factors affecting the award include execution risks such as availability of skilled manpower and materials, changes in prices of materials, changes in political, economic and regulatory conditions.

 

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders and/or persons connected with them have any direct or indirect interest in the Contract.

 

DIRECTORS’ STATEMENT

The Board of Directors of the Company is of the opinion that the acceptance of the Contract is in the best interest of the Company.

 

This announcement is dated 11 July 2018.






Announcement Info

Company Name HANDAL RESOURCES BERHAD
Stock Name HANDAL
Date Announced 11 Jul 2018
Category General Announcement for PLC
Reference Number GA1-05072018-00016