Pre-Bid Agreement

BackMar 02, 2007
Further to our announcement dated 26th February 2007, we would like to make further disclosure on the Pre-Bid Agreement as follows:-

The participating pre-bid partners have entered into the Pre Bid Agreement on the strategy of synergizing their respective strengths. The primary objective of the Pre Bid Agreement is to bring together the parties on a very preliminary stage of sharing strength in numbers and expertise while the specific details of the Engineering, Procurement, Construction and Commission of Sabah-Sarawak Gas Pipeline Project (Project) they intend to bid for are still uncertain. On the strength and expertise of each party we highlight that Naim has the capability and experience in resolving land issues and in civil & infrastructure construction whereas NACAP is a reputable, experienced foreign onshore pipeline laying and installation company and PBJV has the capability and experience in conducting testing and commissioning of oil and gas pipelines. The combined expertise and experiences of the 3 parties has resulted in the pre bid joint venture partners to be jointly prequalified as bidders for the Project.

The participating interests of the parties in the Pre Bid Agreement shall be in the following proportions:-

Naim 40%
NACAP 40%
PBJV 20%

At this juncture the parties have not agreed upon the specific terms of their respective roles and commitments in the final joint venture arrangements as such terms are very dependent on the availability of the specific details and conditions of the Project. Therefore, further information will be disclosed as and when detailed terms are agreed upon by the parties hereto.

Dated this 2nd day of March 2007