YHM bags $183m semi-sub rig building contract in Andaman Sea

For a SEA-based national oil company.

The Board of Directors of YHM Group Limited (YHM) announced that it has secured a contract with a value of up to approximately USD183 million over a 3-year period with an additional 2 year extendable option to provide a semisubmersible rig to be used by a Southeast Asian based national oil company to support its oil and gas activities in the Andaman Sea, the company said in a disclosure to the Singapore Exchange.

YHM is in the process of forming a joint venture company to own the semi. The semi will be upgraded and refurbished and is expected to be deployed in the Andaman Sea between end 2013 and early 2014.

Further details of the joint venture company will be announced upon the finalization of the joint venture company.

The project will be funded through internal resources as well as bank borrowings. The project may have a positive contribution to YHM's consolidated revenue for the financial year ending 31st December 2013.

None of the Directors or substantial shareholders of the Company has any interest, directly or indirectly, in the above mentioned transactions, save for their shareholdings in the Company.