Kuala Lumpur, 27 February 2025

The Board of Sapura Energy Berhad ("Sapura Energy" or "the Company") today announced that various classes of creditors (collectively, the “Scheme Creditors”) of Sapura Energy and 22 of its subsidiaries (collectively, the “Scheme Companies”) have approved the proposed schemes of arrangement and compromise between the Scheme Companies and their respective Scheme Creditors (the “Schemes”) as part of its debt restructuring plan.

The Scheme Companies concluded 52 separate Court Convened Meetings between 21 February 2025 and 27 February 2025, pursuant to the Convening Order granted by the High Court of Malaya under Section 366(1) of Companies Act 2016, on 7 March 2024 and extended on 6 June 2024.

Scheme Creditors who were present at the relevant Court Convened Meetings, including the financing institutions providing the Group’s multi-currency financing facilities (“MCF Financiers”) as well as trade creditors, voted overwhelmingly in favour of the Schemes.

The Schemes will become binding on the Scheme Companies and their Scheme Creditors upon an order of sanction being made by the High Court of Malaya pursuant to Section 366(4) of the Companies Act 2016, and upon such order being lodged with the Companies Commission of Malaysia. The Scheme Companies have instructed their solicitors to proceed with the filing of the application for sanction of the Schemes.

“We are very grateful for the support shown by all creditors towards Sapura Energy’s debt restructuring effort. Despite the lengthy process, they remained committed to the turnaround and we deeply appreciate their trust”, said Sapura Energy Group Chief Executive Officer Muhammad Zamri Jusoh. “We believe we have offered creditors a fair and equitable resolution, as part of our commitment to preserve the Malaysian energy eco-system.”

Under the Schemes, the admitted claims of Scheme Creditors who fall within the class of Preferred Unsecured Creditors will, after the waiver of all penalty charges, late payment charges and interest or profit accruing from 31 January 2022 to the Restructuring Effective Date (the “Remaining Claims”), be settled fully in cash within 90 days after the occurrence of the Restructuring Effective Date.

The Restructuring Effective Date is expected to fall in August 2025 at the earliest, subject to fulfilment of certain conditions precedent.

Certain Scheme Creditors who are Malaysian service providers in or to the oil and gas sector (“Ecosystem Creditors”) are included in the class of Preferred Unsecured Creditors. The settlement of the Remaining Claims of Ecosystem Creditors will be funded from the proceeds of an investment to be made by a White Knight upon the occurrence of the Restructuring Effective Date.

For Unsecured Creditors, their admitted claims under the Schemes will, after an irrevocable waiver of all penalty charges, late payment charges and interest or profit accruing from 31 January 2022 to the Restructuring Effective Date, be settled as follows:

• 20.22% will be converted into SOMV Debt, to be repaid by Sapura Upstream Sdn Bhd;
• 46.98% will be converted into Sustainable Debts (Drilling) and Sustainable Debts (Brazil), to be repaid by Sinar Drilling Sdn Bhd and Sinar Brazil Sdn Bhd, respectively;
• 15.91% will be settled through the issuance of Redeemable Convertible Unsecured Islamic Debt Securities (“RCUIDS”) by Sapura Energy;
• 9.84% will be settled through the issuance of new ordinary shares by Sapura Energy; and
• 7.05% will be permanently and irrevocably waived.

Included in the class of Unsecured Creditors are the MCF Financiers, whose continued support has been pivotal in the Group’s restructuring efforts.

Sapura Energy and the majority of the MCF Financiers reached an accord on the Schemes through negotiations mediated by the Corporate Debt Restructuring Committee (“CDRC”). Approvals-in-principle obtained from the MCF Financiers in December 2023 and January this year, assisted in paving the way for CourtConvened Meetings with the Scheme Creditors.

“On behalf of Sapura Energy’s Board of Directors and senior management, we once again formally acknowledge and thank the members of the CDRC for their valuable guidance and professionalism during the mediation process. We are equally grateful to the MCF Financiers, who made it possible for us to achieve this significant milestone," said Sapura Energy Chairman Shahin Farouque Jammal Ahmad.

Cautionary note: “Sapura Energy”, “the group” and “the company” are used for convenience where references are made to Sapura Energy Berhad in general. Similarly, words like “we”, “us” and “our” are used to refer to Sapura Energy Berhad in general or to those who work for the company and its subsidiaries, where relevant. This press release may contain forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding our financial position, financial estimates, business strategies, prospects, plans and objectives for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Such forward-looking statements reflect our current view with respect to future events and are not a guarantee of future performance. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”, “forecast” or similar expressions and include all statements that are not historical facts.