1. Introduction

The Board of Directors of Uzma wishes to announce that it has on 18 March 2020 obtained the approval from ExxonMobil Exploration and Production Malaysia Inc. (“EMEPMI”) to announce that Setegap Ventures Petroleum Sdn. Bhd. (“SVP”), a majority-owned subsidiary of the Company had been awarded a contract by EMEPMI for the provision of pumping equipment and services (“Contract”) through EMEPMI’s letter of award dated 27 February 2020 (“Letter of Award”).

2. Salient Term

The salient terms of the Contract are as follows:

(a)   To provide pumping equipment and services to EMEPMI. 

(b)   The Contract is for a primary term of four (4) years, with EMEPMI having the option to extend the contractual term for another year on the same terms and rates.

(d)   The Contract is enabling in nature and the value of the Contract would depend on the number of work orders issued by EMEPMI for the duration of the Contract.

3. Risk factors

For this Contract, the Company foresees amongst others potential risk factors include project operational and execution risks, work schedules, delivery timelines and adverse weather conditions.

4. Financial effects

The Letter of Award will not have any effect on the share capital and shareholding structure of the Company as it does not involve the issuance of ordinary shares in the Company. However, it is expected to contribute positively to the earnings and enhance net assets per share of the Uzma Group for the financial year ending 30 June 2020 and onwards until the expiry of the Contract.

5. Directors’ and Major Shareholders’ Interests

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of Uzma has any direct or indirect interest in the Letter of Award or Contract.

6. Directors’ Statement

The Board of Directors of the Company, after considering all aspects of the Letter of Award, is of the opinion that the acceptance of the Letter of Award is in the best interest of the Company.

This announcement is dated 18 March 2020.