1. INTRODUCTION
DIALOG Group Berhad (“DIALOG”) is pleased to announce that its wholly owned subsidiary, Dialog E & C Sdn. Bhd. (“DECSB”), has signed an EPCC Contract with PRPC Utilities and Facilities Sdn. Bhd. (“PRPCUF”) with an estimated value of RM248 million, for the Provision of Engineering, Procurement, Construction and Commissioning (“EPCC”) of Titanium Nitrile Butadiene Latex (“NBL”) Outside Battery Limit Facility Project for Pengerang Integrated Complex (“PIC”) at Pengerang, Johor (“the Project”).
DECSB will construct the required interconnecting & utilities line and a new Effluent Treatment Plant (“ETP”) Facility in the PIC as part of PRPCUF’s growth programme.
The identified interconnecting & utilities lines and the new ETP Facility are to support the development of the NBL Plant by providing all the required utilities, offsite and interconnecting feedstock pipelines for the NBL plant to operate and treat its effluent at the new ETP Facility.
2. SALIENT TERMS OF THE EPCC CONTRACT
2.1 SCOPE OF WORK
The scope of work of the Project involves the engineering, procurement, construction and commissioning of NBL Outside Battery Limit Facility Project for PIC at Pengerang, Johor.
2.2 THE PROJECT PERIOD
The Project will commence immediately and is expected to be completed by Second Quarter 2023.
2.3 CONTRACT PRICE AND PAYMENT
The estimated value of the EPCC Contract is RM248 million, payable to DECSB progressively throughout the EPCC period. The EPCC Contract was obtained through competitive bidding and the value of the EPCC Contract was based on the scope of work specified by PRPCUF.
3. INFORMATION ON PRPCUF
PRPCUF is a subsidiary company of PETRONAS Refinery and Petrochemical Corporation Sdn Bhd (“PRPC”). PRPC is the developer of the PIC in Pengerang, Johor.
4. FINANCIAL EFFECTS
The Project is not expected to have any effects on the share capital and substantial shareholders’ shareholding of DIALOG. The Project, however, is expected to contribute positively to the earnings and net assets of DIALOG for the financial years ending 30 June 2022 onwards until the completion of the Project.
5. RISKS
Risk factors affecting the Project include but are not limited to execution risks such as availability of skilled manpower and materials, changes in prices of materials, and changes in political, economic, financial market and regulatory conditions. DIALOG will undertake all the necessary efforts to mitigate the various risk factors identified.
6. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS
None of the directors of DIALOG, major shareholders of DIALOG and/or persons connected with them have any interest, whether direct or indirect, in the EPCC Contract.
This announcement is dated 3 November 2021.
