The Board of Directors of Muhibbah announced that Muhibbah, as the consortium lead partner, has accepted the activation of Optional Scope from PETRONAS Carigali Sdn Bhd, a subsidiary of Petroliam Nasional Berhad (PETRONAS), for the Provision of Engineering, Procurement, Construction and Commissioning + Installation (EPCC+I) of Light Weight Structure, Duyong Brownfield Modification and Host Tie-In for Gansar Project, around 190 kilometres from Terengganu shore for a total contract value of approximately MYR 318 million ("the Contract"). DURATION OF CONTRACT WORK ORDER: The execution of the scope is scheduled to commence immediately and is expected to be completed not later than end of May 2024. FINANCIAL EFFECTS: The Contract is expected to contribute positively to the earnings and net assets of Muhibbah and its subsidiaries ("Muhibbah Group") for the current and future financial years. The Contract does not have any impact on the share capital and/or shareholding structure of Muhibbah. RISKS: The Contract is within the normal ordinary business scope of Muhibbah Group, hence it is
unlikely to expose Muhibbah Group to any new risks beyond those associated with its current businesses. Such risk factors affecting the Contract include changes in the economic and regulatory environment, operational risks such as non-completion risk, shortage of manpower, fluctuation of material prices and foreign currencies, all of which the Group would take appropriate measures to mitigate the risks.