Date: 26.02.2024.

Kuala Lumpur, 26 February 2024

In a strategic move to address the growing market need for integrated decommissioning services in Southeast Asia as well as addressing the nation’s energy transition agenda, Sapura Energy Berhad (“Sapura Energy” or “the Group”) today unveiled Kitar Solutions. Kitar Solutions is the outcome of a strategic partnership with AF Offshore Decom, a well-established Norwegian company specialising in customized decommissioning solutions in the North Sea. Combined with our Group's strategic heavy lift assets and fabrication yard in Lumut, Kitar Solutions aims to simplify the decommissioning process through integrated Engineering, Preparations, Removal, and Disposal (EPRD) services.

The inception of Kitar Solutions marks a significant step in the expansion of the Group's Engineering and Construction (E&C) business segment decommissioning portfolio, reflecting the company’s aim to contribute towards a circular economy within the region. Through Kitar Solutions, Sapura Energy and AF Offshore Decom have plans to improve existing facilities at Sapura Energy’s fabrication yard in Lumut, aligned with its aim to meet the highest environmental standards in waste management and recycling.

Sapura Energy Group Chief Executive Officer Datuk Mohd Anuar Taib said, "Sapura Energy is committed to embrace the low-carbon energy future through collaborations and shared technical expertise with key stakeholders; playing our part towards a more sustainable and environmentally responsible future.”

AF Offshore Decom brings 20 years of decommissioning execution experience to the partnership, with an impressive client base, and furthermore owns and operates the Vats decommissioning facility in Norway.

AF Offshore Decom Chairman Lars Myhre Hjelmeset added, “With Kitar Solutions, we are positioned to provide exceptional decommissioning services across the APAC region, ensuring adherence to the European Union's rigorous environmental and social governance standards. Our partnership can make a significant contribution towards a sustainable, green transition.”

Beyond compliance, Kitar Solutions is poised to drive regional economic growth through the development of local vendors and the creation of high-value employment opportunities. The initiative is also designed to foster strong links with the local business ecosystem, transferring technical skills, capabilities, and expertise, such as recycling and repurposing offshore structures, and rope-access.

Datuk Anuar also added, "We are fostering a vibrant regional hub for decommissioning that champions environmental stewardship and social governance. By embracing low-carbon energy future and investing in our communities, we are not just contributing to the circular economy; we are actively shaping it."

Sapura Energy's proactive approach in establishing Kitar Solutions reflects the Group’s enduring commitment to delivering environmental and economic benefits to the regions it operates in. As the demand for decommissioning services rises in line with offshore assets reaching their end of life, Kitar Solutions stands ready to deliver bespoke, world-class standards in decommissioning, moving towards greener solutions one step at a time.

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.